Stewart v. Outhwaite

44 S.W. 326, 141 Mo. 562, 1897 Mo. LEXIS 347
CourtSupreme Court of Missouri
DecidedNovember 23, 1897
StatusPublished
Cited by19 cases

This text of 44 S.W. 326 (Stewart v. Outhwaite) is published on Counsel Stack Legal Research, covering Supreme Court of Missouri primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Stewart v. Outhwaite, 44 S.W. 326, 141 Mo. 562, 1897 Mo. LEXIS 347 (Mo. 1897).

Opinion

Barclay, P. J.

— The St. Clair County Bank began ap action against Mr. Chas. F. Outhwaite on notes aggregating about $3,200, AprillO, 1893. At the same time the bank sued out an attachment. The writ was levied on two mules and also on a stock of drugs and some other personalty, as the property of Outhwaite. The property was found in possession of Mr. Robt. Edwards, who clainaed to own it. He gave bond to have it forthcoming. He afterward filed an interplea in the attachment case, asserting his claim to all the property seized by the sheriff under the writ. Before the interplea came to final trial the bank failed. Mr. Stewart, as assignee of the bank, was substituted as plaintiff in the attachment suit. He contested Mr. Edwards’ claim to-the property. The issue of title was tried before Judge Lay with the aid of a jury. The result was a verdict for the interpleader for the mules only, but against him as to the other property. There was judgment accordingly. The interpleader appealed after the customary steps to that- end. The real controversy as developed is between the bank’s assignee and the interpleader Edwards. The original defendant has left the field of litigation entirely.

The testimony submitted by the interpleader at the trial tended to prove the following facts: In July., [567]*5671891, Mr. Outhwaite bought a stock of drugs and fixtures, mostly on credit, but upon which he paid $500 in cash, and then $100 per month for four or five months. ’The notes in suit represent the indebtedness to the bank for the stock at the time this suit was brought. After a few months the drug business of Outhwaite became a losing one. At the same time he was carrying on a farm in St.- Clair county, but that enterprise was- also not prosperous. While thus engaged he and Edwards were intimate friends. He borrowed of Edwards $2,000, at different times, and gave four notes therefor. While his drug business was falling behind, Outhwaite became indebted to Edwards (who was his clerk in 1893) to the extent of $600, and gave his note to Edwards for that additional- sum, making in all five notes aggregating $2,600. The officers of the St. Clair County Bank began to urge Outhwaite to pay his debt by surrendering the drug store to it or its agent, but he evidently preferred to pay his friend Edwards. With that object in view he first gave Edwards a chattel mortgage on the stock and fixtures of the drug store to secure the indebtedness. Afterward he concluded that there was no more of the said property, at a reasonable price, than was necessary to pay the claim to Edwards. So he gave to the latter a clear bill of sale therefor. The written instruments executed by Outhwaite to Edwards were introduced in evidence by the interpleader. Edwards testified that he had ample means for the said advances'; that he had returned from the west with $2,200 in cash, and with other property; that his wife-had $2,000 which he controlled; and that his stepchildren had $2,000 in his care as their guardian. Mr. Outhwaite testified how he had expended large sums of money, and showed his losses in his business ventures. In answer to a direct question he declared that the transfer of the property to [568]*568Edwards was not intended to hinder, delay, or defraud his creditors.

It is noteworthy that at the trial the interpleader took the affirmative, without any recorded ruling on that point. He was the first witness sworn. After some formal proof to show that the property levied on was the same as-that claimed in the interplea, the chattel mortgages on which Mr. Edwards relied and the bill of sale were offered in evidence. One was in favor of Mr. Harper; it covered the mules. The other mortgage and the bill of sale were in favor of Edwards. They conveyed the drug store, etc. Mr. Edwards as a witness testified to the transfer by Harper to him of the first named chattel mortgage. He then proceeded to describe the transaction between Outhwaite and himself wherein he took the mortgage (and finally the bill of sale) of1 the drug stock. He stated that the notes (representing his claim for about $2,600) remained unpaid. On cross-examination the prior dealings between Outhwaite and Edwards were fully gone into. It appeared that part of the claim of Edwards was for money loaned in 1891, when Outhwaite, the proprietor in 1893, was clerk for Edwards in the same drug store.

The assignee of the bank introduced in evidence the statements of Edwards at a former trial, as reported by a stenographer. They tended to contradict his last version of the transaction in many vital particulars, and to weaken the force of his testimony generally. It is not necessary to go further into the details of the evidence to indicate the points of contradiction.

1. It was suggested on behalf of the interpleader that the discrepancies referred to were ascribable to the undue influence of certain stimulants with which he sought to fortify himself for the first trial. The sufficiency of that explanation of the contradictions was, of [569]*569course, for the triers of the fact. No question of law in regard to it is raised for decision in this case.

2. Error is charged in the giving of the fifth instruction for the assignee, as follows:

“5. The court instructs the jury that it devolves on the interpleader to make out his case by a preponderance of the evidence, and before he can recover you must be satisfied that, at the time of the levy of the writ of attachment herein, he was the owner of the property in controversy, and in this' connection you áre instructed that if you believe from the evidence that the chattel mortgage and bill of sale introduced in evidence were made by Outhwaite for the purpose of hindering, defrauding, or delaying his creditors, and Edwards knew of and participated in such purpose on the part of Outhwaite, then he can not recover herein, even though you may believe that Outhwaite was indebted to Edwards at the timed;

Several points of objection to this instruction are presented. But before discussing them, another instruction given by the court of its own motion should be mentioned, viz.:

“If the jury believe from the evidence that O. F. Outhwaite had borrowed of Robert Edwards the sum of $2,000 and was indebted to him in the sum of $600 for services as clerk, and that the notes and mortgage from Outhwaite to Edwards were given to secure said notes; and that the bill of sale was given and taken in payment of said notes and that the goods were not worth more than reasonably sufficient to pay said debt, and that Edwards was in possession of the goods mentioned in the bill of sale and that they were, while in his possession, levied on by the sheriff in the case of the St. Olair County Bank v. said Outhwaite, then the jury will find for the interpleader, Edwards, for all the goods so levied on by the sheriff which are claimed in [570]*570this interplea and are included in said bill of sale, unless you find from the evidence that the sale of the goods was fraudulent, as submitted to you in another instruction.”

It is said by appellant’s counsel that the declaration that “it devolves on the interpleader to make out his case by a preponderance of the evidence” is not correct. The interplea was a mere claim of ownership of the property in dispute. The mortgage and bill of sale were not admitted by the- pleadings. Their existence had to be proved by the interpleader as the foundation of his claim. The way the interpleader began the trial and his offers of testimony show that he then took the position that the burden of proving his ownership was on him.

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Bluebook (online)
44 S.W. 326, 141 Mo. 562, 1897 Mo. LEXIS 347, Counsel Stack Legal Research, https://law.counselstack.com/opinion/stewart-v-outhwaite-mo-1897.