Sorrells v. Sigel-Campion Live-Stock Commission Co.

148 P. 279, 27 Colo. App. 154, 1914 Colo. App. LEXIS 171
CourtColorado Court of Appeals
DecidedNovember 9, 1914
DocketNo. 4027
StatusPublished
Cited by7 cases

This text of 148 P. 279 (Sorrells v. Sigel-Campion Live-Stock Commission Co.) is published on Counsel Stack Legal Research, covering Colorado Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Sorrells v. Sigel-Campion Live-Stock Commission Co., 148 P. 279, 27 Colo. App. 154, 1914 Colo. App. LEXIS 171 (Colo. Ct. App. 1914).

Opinion

Hurlbut, J.,

rendered the opinion of the court.

On Rehearing:

This action was begun November 4, 1909, by defendant in error (plaintiff below). The complaint contains three causes of action: First, replevin to recover possession of three hundred and ten head of lambs included -within a mortgage upon eleven hundred and three of such animals; second, to recover $1400 for value of wool clipped from the sheep during the life of the mortgage, and before breach of the covenants thereof; third, to recover $1400 for injury and damage done to the lambs by such clipping.

The answer admits the mortgage, possession by defendant Sorrells of the lambs, and his refusal to surrender the same upon demand of plaintiff; but defends the action under a claim that he had an agistor’s lien, in the sum of $950, uppn the lambs replevined, superior to the lien of the mortgage. The answer also alleges that defendant received into his custody, from the owner Davis, something over two thousand sheep, to be taken care of and fed by him under the terms .of a contract dated October 28, 1908, entered into between himself and Davis; that defendant foreclosed the agistor’s lien and realized from the sale of the lambs the sum of $600, which he applied upon said indebtedness of $950, leaving a balance still due him of $360; that said plaintiff company, before execution and delivery of the mortgage, had full knowledge of all the circumstances surrounding the delivery of the sheep to him, and the care and feeding of the same. The answer further alleges as a defense that the plaintiff company took from defendant’s possession all of the two thousand sheep aforesaid, except the three hundred and ten lambs replevined, and sold the [156]*156same for more than enough to pay the entire mortgage indebtedness from Davis; but that instead of applying it to the liquidation of such indebtedness, it applied a large portion of such-proceeds first to the liquidation of an open account of $3200 or $3400 existing at the time from Davis’ to the mortgagee company, which left an insufficient amount from the sum received upon sale of the sheep to pay the mortgage indebtedness. The answer also admits that Davis clipped the wool and sold it to defendant, as charged in the complaint; but claims he purchased the same from said Davis for the agreed price of $1390, and applied that amount upon an indebtedness of $2000 then existing from Davis to himself.

The case was tried to the court without a jury, and the court rendered judgment in favor of plaintiff for the possession of the Iambs, or for their value, $1071, in case of non-delivery; also for $1103 damages for conversion of the wool.

This case has been ably prosecuted and defended by the attorneys for the respective parties, and we have given it careful consideration. There is but little controversy as to the facts. It appears to.be conceded by counsel for both parties that the disposition of three sharply defined issues is sufficient to determine this appeal:

First. Under our statute, does a chattel mortgage upon sheep, including in terms their “increase,” include the wool clipped therefrom in proper season, within the life of the mortgage, and before default, when no mention is made therein of such wool ?

Second. Did the relations between Davis and Sorrells warrant an agistor’s lien' in favor of the latter, under our statute ?

Third. If Sorrells was entitled to an agistor’s liep, did he waive such lien by his subsequent statements and acts, made and done at or about the time he solicited Mr. Campion, manager for defendant company, to guarantee [157]*157the future costs and expenses of feeding the lambs, then in his (Sorrells’) possession?

We will discuss the issues in the order named and refer to facts which appear to be established by the evidence as we proceed.

First, did the chattel mortgage include the wool thereafter clipped? At common law all'personal property subject to absolute sale could be mortgaged, and it is a general rule of law that a chattel mortgage fastens a lien only upon the specific property therein described. The statutes of California and some other states (not including Colorado) render a chattel mortgage void as to personal property other than that specifically designated by the statute. Section 515, Revised Statutes 1908 of Colorado, provides, among other things, that

“Every mortgage of live stock may cover and bind the increase of such live stock, or any part thereof, thereafter to be born, as may be provided therein,” etc.

The chattel mortgage in the case at'bar was given upon the following described property: ■

“All the following described live stock, cattle, and increase thereof and personal property, viz.: * * * Eleven, hundred three (1103) head of good Idaho lambs, average weight about 72 pounds, being the identical sheep purchased from B. F. Saunders at Cheyenne, Wyo., Feb. 20, 1909. ❖ Sji ❖

Said sheep are at present located in feed lots situated on the Teller’s and Sorrells’ ranch, located about three miles east of the town of Windsor, Weld County, Colorado,” etc.

A construction of the word “increase” found in the mortgage seems necessary. It has been repeatedly construed by text-writers and appellate courts in various jurisdictions, and the almost unanimous conclusion reached is that the term “increase,” when used in chattel mortgages upon sheep and other live stock, refers exclusively to the progeny or young of such animals, and does not include [158]*158wool grown on sheep, milk taken from cows, etc., during the life of the mortgage and before foreclosure, or before breach of the mortgage covenants, and particularly so when the possession remains in the mortgagor under the terms thereof. We find no text-writer, and but one case, holding to the contrary, viz.: Alferitz v. Ingalls, 83 Fed., 964 (decided December, 1897), in which an oral opinion was delivered by the trial judge. He held that the term “increase,” in a chattel mortgage of sheep, included the wool grown on the sheep within the life of the mortgage and before default. That case involved the construction of a chattel mortgage executed in California. It appears to stand alone, and is in direct conflict with the modern decisions of that state. The mortgage there contained the clause “eight thousand sheep and the increase thereof.” A few excerpts from the cases next hereinafter mentioned will be sufficient to show that other courts are not in harmony with this Federal decision in its construction of the word “increase.”

The case of Alferitz v. Borgwardt, 126 Cal., 201, 58 Pac., 460 (decided September, 1899), judicially interprets and defines the meaning and effect of the term “increase” when used in mortgages of live stock. The mortgage there expressly mentioned a drove of sheep and their increase. That case directly involved the right of a mortgagor to clip and sell the wool grown on the sheep after execution of the mortgage and before foreclosure. The mortgagee sued to recover the value of such wool. The court- said, in part:

“Section 2955 of the Civil Code, so far as material here, reads as follows: ‘Mortgages may be made upon the following personal property, and none other: * * * 16. Neat cattle, horses, mules, swine, sheep, goats, and the increase thereof.’

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Bluebook (online)
148 P. 279, 27 Colo. App. 154, 1914 Colo. App. LEXIS 171, Counsel Stack Legal Research, https://law.counselstack.com/opinion/sorrells-v-sigel-campion-live-stock-commission-co-coloctapp-1914.