Union National Bank v. Oium

54 N.W. 1034, 3 N.D. 193, 1892 N.D. LEXIS 15
CourtNorth Dakota Supreme Court
DecidedDecember 28, 1892
StatusPublished
Cited by41 cases

This text of 54 N.W. 1034 (Union National Bank v. Oium) is published on Counsel Stack Legal Research, covering North Dakota Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Union National Bank v. Oium, 54 N.W. 1034, 3 N.D. 193, 1892 N.D. LEXIS 15 (N.D. 1892).

Opinions

Corliss, C. J.

This litigation presents a strife for supremacy between a chattel mortgagee, the plaintiff and appellant, and an attaching creditor of the mortgagor, one of the defendants and respondents. The sheriff who made the attachment and the creditor in whose behalf it was made are both parties defendant. The nature of the action is replevin. To sustain it, the plaintiff must show a valid chattel mortgage, and that its lien is superior to that of the attachment. The mortgage has been assailed as invalid for want of a sufficient description of the mortgaged property. It was executed at Oshkosh, in the State of Wisconsin, on property in the then Territory of Dakota. The portion of the mortgage material to a proper consideration of this point reads [198]*198as follows: “The following described -goods, chattels, and property, viz: 4,000 bushéls of wheat, in granary on section 19, township 134, range 56; 38 horses, being all the horses on said section 19; 26 head of cattle, cows, bulls, steers, heifers, etc., being all the cattle on said section; 6 self-binders; 7 sulky 16 in. plows, (make, Flying Dutchman;) 2 Flying Dutchman gang plows; 4 Van Brunt 3-horse seeders; 1 broadcast Stowbridge seeder; 6 4-horse drags; 16 set double harness; 2 top buggies; 1 platform wagon; 7 double-heavy lumber wagons and racks; 80 tons hay; 2,000 bushels oats; and all other personal property on said section, — all said property being on said section; also r threshing machine, together with all the appurtenances,” etc. We think that the description is sufficient, within the rule which merely requires that it should suggest such inquires as will enable a third person by the aid thereof to identify the property. The property, with an exception which will be referred to hereafter, was described as being situated on section 19, township 134, range 56. The mortgage was filed in Ransom County, Territory of Dakota, and there was found within that county á description of land corresponding with the description in' the chattel mortgage. We think that the fact that neither the county nor the state in which this real estate was located was stated in the mortgage is unimportant, because, under the law requiring the mortgage to be filed in the county where the property is situated, the mortgagee filed it in Ransom County, in the then Territory of Dakota, and within that county it was shown that -a piece of land known, according to the government survey, as “section 19, of township 134, in range 36,” is situated, and that upon it was property answering to the description contained in the mortgage, owned by the mortgagor. There is no evidence that as to' any of the classes or kinds- of property described in the mortgage there was any greater number belonging to that class than the number mentioned in the mortgage. Without further discussion of this point or a review of the authorities, we refer to the extended note to the case of Barrett v. Fisch, [Iowa, 41 N. W. Rep. 310,] 14 Am. [199]*199St. Rep. 238, 239, et seq., as containing a collation of the decisions, and we are satisfied that they fully sustain our view in this respect.

It was urged that the only means of identifying the property intended to be mortgaged was by its location at the time of the execution of the mortgage, and that there is no evidence which fixes its situs at the precise moment of the giving of the security. But it appears to be undisputed that all of the property, except an engine, separator, and some plows, were on this section 19 the day the property was attached, which was only three days after the execution of the mortgage. Having in view the character of the property, and the fact that the owner thereof, Mr. Morrison, also owned this tract of land, that the property seems to have been kept there constantly, and there being no proof that it was placed upon this farm after the execution of the mortgage, wc are clear that there is nothing in this contention; but, as to the engine, separator, and some of the plows, we must hold that the description in the mortgage was insufficient. It appeared that they were' not upon section 19, and there was no other description of them, aside from the incorrect statement as to their location, sufficient to point out the property to a third person within the rule governing such cases.

The attachment, it is claimed, was made after the execution but before the filing of the mortgage. Assuming this to be so, still the question remains whether the attachment lien is superior to that of the mortgage. That the lien of the mortgage was good as between the parties to it without the filing thereof cannot be questioned. The attaching creditor can be in no better position, unless by virtue of the statute. It provides as follows: “A mortgage of personal property is void as against creditors of the mortgagor and subsequent purchasers and incumbrancers of the property in good faith for value, unless the original, or an authenticated copy thereof, be filed by depositing the same in the office of the register of deeds of the county where the property mortgaged, or any part thereof, is at such time situated.” The invalidity of the mortgage is claimed, not by a subsequent purchaser [200]*200or incumbrancer, but by an attaching creditor, who attached for a debt contracted before the giving of the mortgage. It is therefore necessary to determine the meaning of the word “creditors” in this statute. It is important that there should be kept in mind a distinction between the right of a general creditor to insist that an unfiled chattel mortgage is void and the ability to enforce this right. While an unfiled chattel mortgage may be void as to a general creditor, he cannot avail himself of the statute until he has armed himself with attachment or execution and levied on the property, or has in some other way secured a lien thereon. Before he has seized the property covered by the chattel mortgage, or secured some lien thereon, he is in no position to raise the question that the mortgage is void as to him. Bank v. Bates, 7 Sup. Ct. Rep. 679; Kitchen v. Lowery, (N. Y. App.) 27 N. E. Rep. 357, Thompson v. Van Vechten, 27 N. Y. 568; Dempsey v. Pforzheimer, (Mich.) 49 N. W. Rep. 465. The statute does not, however, require that he should be armed with process or have a lien on the property to entitle him to come within the category of “creditors,” as to whom the unfiled instrument is a nullity. The mortgage is not void as to creditors who have seized the property, or who hold process under which they can seize it. This is not the language of the statute. The mortgage is void as creditors, and nothing is said in the statute about the necessity of a creditor’s having secured a lien on the mortgaged property. The fact that the creditor cannot assail the mortgage until he has seized the property is of no moment in determining whether he belongs to the class of persons as to whom the mortgage is void. Whether he belongs to that class is one question; whether he is in a position to derive benefit from belonging to that class is another, and entirely different question. The two inquiries are distinct, and each is independent of the other. When he arms himself with process, and seizes the mortgaged property, the court will then inquire whether he is a “creditor,” within the meaning of the statute which declares void the mortgage as against “creditors.” The facts which determine this point are [201]*201independent of the fact of seizure, and can derive no aid therefrom.

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Bluebook (online)
54 N.W. 1034, 3 N.D. 193, 1892 N.D. LEXIS 15, Counsel Stack Legal Research, https://law.counselstack.com/opinion/union-national-bank-v-oium-nd-1892.