Stevens v. Buffalo & New York City Rail Road

31 Barb. 590, 1858 N.Y. App. Div. LEXIS 178
CourtNew York Supreme Court
DecidedSeptember 13, 1858
StatusPublished
Cited by10 cases

This text of 31 Barb. 590 (Stevens v. Buffalo & New York City Rail Road) is published on Counsel Stack Legal Research, covering New York Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Stevens v. Buffalo & New York City Rail Road, 31 Barb. 590, 1858 N.Y. App. Div. LEXIS 178 (N.Y. Super. Ct. 1858).

Opinion

Greene, J.

(After discussing some questions not necessary to be mentioned here.) The most important question in this case remains to be considered. That question relates to the nature of the property known as the rolling stock of the company, including its engines and cars of various kinds and the property described as shop-tools, machinery, &c.; all of which is used, in one way and another, in the operations of the rail road; and so far as the title to this class of property is involved in the case, it turns upon the question Whether such property is personal property or fixtures; or, to state the question in a simpler form and so as to present its precise legal aspects in a clear light, and the opposing views of the parties in plainer contrast, whether it is personal or real property. If such property, after it is purchased for the use of the company and put upon its road, is ipso facto, so affixed to the realty as to become, in judgment of law, a part of the realty, the lien of the mortgage attached to the property in questibn, as fast as it was acquired, and the- plaintiffs are eptitled to it, without regard to the time of its acquisition.

If, on the contrary, after it is placed on the road, it retains its character of personal property, which it clearly -was before, the plaintiffs’, claim must fail, irrespective of the question whether a mortgage of personal property to be acquired after its execution is sufficient to giv§ a title to or create a lien upon such property, in equity. For if such title or lien can be so created, it relates to personal property, and the law applicable to that species of property is controlling on questions both as to the original and continuing validity of the title or lien. The plaintiff’s mortgage was in its terms a good chattel mortgage as to all personal property to which it was applicable, but it was never filed as a chattel mortgage, as our statute requires, (Laws of 1833, p. 402, § 1,) in order to preserve its lien as against creditors; and as this question arises between the mortgagee and a creditor of the mortgagor, the mortgage, so far as it relates to the personal property, is void under the provisions of the statute last cited, and the plain[597]*597tiffs’ title, so far as it rests upon, the mortgage, must fail. This was conceded on the argument. But the plaintiff claims that the rolling stock, &c. “ acquired after the date of the mortgage and used by the company in operating the road, are fixtures, or in the nature of fixtures, and are appurtenant to the road and other mortgaged property.” As to the same kind of property existing and on the road at the date of the mortgage, the plaintiff asserts a title on another ground, which will be considered hereafter. The alternative phrase “ or in the nature of fixtures,” used in the plaintiffs’ points to describe the character of the property in question, is too indefinite and vague for any practical purpose. There is not, to my knowledge, any intermediate state or condition between property regarded as personal either in the legal or popular sense of the term, and that which though originally personal has been so affixed or attached to real property as to become merged in and part and parcel of the realty. It must, in the nature of things, be one or the other. It cannot be both, nor can it for any legal purpose be said to partake of the nature of both. The property in question then, as has already been stated, is either personal or real property, and the plaintiffs’ title depends upon the decision of the question as to which class the property belongs to.

As an original question, I confess I should find it difficult to suggest a plausible ground of doubt in relation to it. Hone of the property in dispute is or can be affixed or attached to the real estate for any purpose for which it was intended to be used; nor indeed, without entirely defeating that purpose, within any sense of those terms as they ai’e used as distinctive tests of the difference between personal property and fixtures. The engines, cars &c., composing the rolling stock, it is well known, are manufactured for sale to the different roads in the process of construction and in operation throughout the country. They are as well adapted for use on one road as another of the same width or gauge as the road for which they were built or on which they are in use; and partly worn stock of [598]*598this kind is frequently sold from roads on which it has been used, for the purpose of replacing it by new and improved machinery. It has always heretofore been treated as personal property liable to seizure and sale on execution, and has often by means of that process been appropriated to the payment of the debts of the company.

But within the last year it has been claimed for the first time, that the universal opinion of the legal profession and the business community, which has been acted upon so often and by so many parties, and has been sanctioned by the acquiescence of all, including the courts* the legal profession and parties for the last twenty-five years, is founded in a radical mistake as to the nature of such property; and in addition to all this, it is claimed that property in familiar us'e long before rail roads were known, which has always been and is now held, and is by the parties who advance this new doctrine conceded to be personal property under other circumstances and when held by other owners* is, by reason of the fact that it is owned and in the use of rail roads converted into real estate. In a word that by such use its nature is, ipso facto, changed. The proposition is a novel one, to say the least of it, and the sanction, direct and indirect, which it has received from judicial opinions and authority, if nothing else, entitles it to grave consideration. I will, therefore, proceed to examine some of the cases which have been cited as authority for this position.

The case of Coe v. Hart and others, (Am. Law Reg. Nov. 1857,) decided in the circuit court of the United States for the northern district of Ohio, by Mr. Justice McLean, in July term, 1857, presented a controversy between the mortgagees named in the first mortgage (which included all property connected with the róad) and the holders of certain bonds secured by a subsequent mortgage, who had obtained a judgment at law on their bonds and issued an execution, which had been levied on some of the cars and engines belonging to the com-.. pany which executed the mortgage. Some of the property levied on was acquired by the company after the execution, of' [599]*599the first mortgage, under which the complainants claimed. This mortgage contained a covenant on the part of the company to execute any further conveyance necessary to transfer to the mortgagee any property acquired subsequent to the mortgage, and comprehended in the description. The mortgage was recorded in all the counties through which the road was to be constructed. The complainants filed a bill for a perpetual injunction restraining the defendants from selling the property levied upon by them. The court held that the mortgage created a valid lien in equity upon, and attached to, subsequently acquired property as fast as it was acquired.

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Cite This Page — Counsel Stack

Bluebook (online)
31 Barb. 590, 1858 N.Y. App. Div. LEXIS 178, Counsel Stack Legal Research, https://law.counselstack.com/opinion/stevens-v-buffalo-new-york-city-rail-road-nysupct-1858.