Wait v. Kellogg

30 N.W. 80, 63 Mich. 138, 1886 Mich. LEXIS 643
CourtMichigan Supreme Court
DecidedOctober 14, 1886
StatusPublished
Cited by2 cases

This text of 30 N.W. 80 (Wait v. Kellogg) is published on Counsel Stack Legal Research, covering Michigan Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Wait v. Kellogg, 30 N.W. 80, 63 Mich. 138, 1886 Mich. LEXIS 643 (Mich. 1886).

Opinions

Sherwood, J.

On the nineteenth day of December, 1882, and for several years previous thereto, Mrs. Sarah K. Burleigh carried on a store business at the village of Homer, in the county of Calhoun. The business wás carried on in her own name, but actually transacted by her husband as her agent. His name was George R. Burleigh. Mrs. Burleigh did her banking business with Thomas Lyon.

Mrs. Burleigh became largely indebted to various persons and firms in conducting her business, and, among others, on the said nineteenth day of December, 1882, she owed Mr. Lyon $5,000, and on that day, to secure the payment of the same, executed and delivered to him a chattel mortgage on her entire stock of goods and other property.

The money thus secured was made payable on demand, and the mortgage. was properly filed when made and executed.

On the same day Lyon took possession of the mortgaged property by virtue of the mortgage, and afterwards advertised and sold the goods, and he became the purchaser of the same, being the highest bidder therefor; and thereupon Lyon reopened the store and carried on the business, using [140]*140the old clerks in the store, and using the same stock which was in the store before the sale, with a few goods added.

The debt to Lyon, the mortgage given to secure the debt, and the sale of the mortgaged property are not questioned.

After Lyon had run the store about a week, and put in $600 or $700 worth of new goods, he sold out the stock and business to Martin Wait, the plaintiff in this case, who took possession thereof January 5, 1883. Prior to January, 1883, the plaintiff resided at Butler, in Branch county, a few miles from Homer, where he carried on a farming business, and in connection therewith ran a cheese factory and country store. When he bought the store at Homer he removed there and engaged in the store business. He at once took George R. Burleigh into his employment, and intrusted him with the management of the store business.

About the thirteenth of February, 1883, William P. Roome & Co., of New York, creditors of Mrs. Burleigh, levied an attachment on a portion of the Burleigh stock of goods, which the plaintiff replevied.

On the seventeenth day of February, very soon after the service of the writ of' replevin, the defendant, as sheriff of the county of Calhoun, by virtue of a writ of attachment from the circuit court in favor of Kellogg & Baker and against Sarah K. Burleigh, attached certain other parcels of the same goods, and in a day or two thereafter levied two ■other attachments from the circuit court, viz., one in favor of the New Home Sewing Machine Company, and one in favor of Henry W. Price & Co., and also two justice’s court ■executions, one in favor of Lyon & Harris, and one in favor of Buhl & Co., — all against Sarah K. Burleigh, on other parcels of the same stock; and the plaintiff brings this suit in trover to recover the value of all the goods seized and levied upon on and after February 17, 1883. These goods were all taken by the defendant as the property of Mrs. Burleigh.

[141]*141The plaintiff claims to be a Iona fide holder of the goods under his purchase of the property from Mr. Lyon, and, further, that the defendant took large quantities of goods under his writs which were never a part of the Burleigh stock.

The defendant’s contention is that the plaintiff is not a Iona fide purchaser; that the several sales from Mrs. Burleigh down to him were fraudulent, and conveyed no title as against Mrs. Burleigh’s creditors; that defendant took no goods except from the Burleigh stock, to his knowledge, and if any were taken by him it was caused by the commingling of the goods, and the refusal of the plaintiff to point out the goods not belonging to the Burleigh stock.

The defendant’s plea in the ease was the general issue, with notice that he would show justification under his several writs.

The cause was tried at the Calhoun circuit, by jury, and judgment was rendered for the defendant.

Plaintiff appeals, and we are asked to review a record in the case containing seventy-eight assignments of error, upon all of which counsel for plaintiff announces he relies.

All the evidence taken on the trial is contained in the record, except that relating to the subject of value of the goods.

There seems to be no question as to what was actually done when the transfers of the goods were made. It appears that, when Lyon transferred the stock to the plaintiff, the latter secured the payment of the purchase money by giving his note, due in thirty days, for $600, and a mortgage upon his farm for $3,300, it being the balance. The note was afterwards paid.

It also appears that, by the taking of the goods by the defendant, the plaintiff’s business was broken up for a number of months, and he was very much damaged thereby.

After the proofs were closedj the circuit judge submitted [142]*142to the jury, in his general charge, by way of recapitulation, the following points for them to consider and pass upon:

“1. Was the plaintiff, or was Mrs. Burleigh, indebted to Kellogg & Baker, or any of those other firms whose attachments and executions are relied upon here by way of justification, at the time of the mortgage to Lyon?
“ 2. If you find that they were, what was the transaction between Burleigh and Lyon ? Was that a valid transaction, or was it-invalid ? Was the mortgage given with an honest purpose to secure Lyon’s debt, or was it given collusively, and with a view to defeat Burleigh’s creditors ?
“3. What was the character of the proceedings to foreclose the mortgage? Was that an honest transaction on the part of Lyon to recover his debt, — make his money, — or was it a transaction collusive in its character, for the purpose of defeating Burleigh’s creditors ?
“4. What was the transaction with Wait, — between Lyon and Wait ? Was Wait a party to any fraud, or was he an honest man, and purchased the goods honestly ? If the latter, did he have notice brought home to him, within the definition already given, which should put him upon his inquiry, and therefore properly charge him with knowledge of that character, of the proceedings between Lyon and Burleigh ? And, further, did he or did he not pay value for the goods ?
“Again: was there an admixture of goods here which excused the sheriff for taking goods which were never Burleigh’s ?
“Again: were the exemptions selected and received by Mr. Wait (for he would have the same right to them Mrs. Burleigh would), or were they not taken by him? Did he have an opportunity to take them, or was he precluded ?
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“The next question is to determine, if you find that Mr. Wait is entitled to recover, how much damages he should recover. * * * What could those goods have been reasonably disposed of for, by Mr. Wait, if he had not been disturbed? Whatever they would have brought him clear, over and above the expenses of selling, he is entitled to recover, and it does not make any difference whether he would have sold them at retail or wholesale. There is no iron-clad rule about that.

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Related

Williams v. Brown
100 N.W. 786 (Michigan Supreme Court, 1904)
Gordon v. Alexander
80 N.W. 978 (Michigan Supreme Court, 1899)

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Bluebook (online)
30 N.W. 80, 63 Mich. 138, 1886 Mich. LEXIS 643, Counsel Stack Legal Research, https://law.counselstack.com/opinion/wait-v-kellogg-mich-1886.