Wintler Abstract & Loan Co. v. Sears

184 P. 309, 108 Wash. 461, 7 A.L.R. 152, 1919 Wash. LEXIS 873
CourtWashington Supreme Court
DecidedOctober 15, 1919
DocketNo. 15220½
StatusPublished
Cited by13 cases

This text of 184 P. 309 (Wintler Abstract & Loan Co. v. Sears) is published on Counsel Stack Legal Research, covering Washington Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Wintler Abstract & Loan Co. v. Sears, 184 P. 309, 108 Wash. 461, 7 A.L.R. 152, 1919 Wash. LEXIS 873 (Wash. 1919).

Opinion

Bridges, J.

This action was brought to recover the photographic reproductions of certain mortgaged abstract books and records, and to recover damages. The trial court nonsuited the plaintiff, and this appeal is from the judgment dismissing the action.

The facts are substantially as follows: In the year 1912, the Clarke County Abstract & Loan Company [462]*462was the owner and in possession of certain real estate and certain records, books, plats, maps, instruments, machines, furniture and fixtures, constituting a complete plant used in the conduct of its business as a maker and seller of abstracts of title to real property. On August 10, 1912, the Clarke County Abstract & Loan Company, in order to secure a note of twenty-four thousand dollars, executed and' delivered to Jessie M. Winder, as trustee, a, mortgage upon its real estate and upon the above-mentioned personal property. One clause of the mortgage is as follows:

“And the said mortgagor mortgages also to the mortgagee as additional security for the said note, all of its plant, used in the conduct of its business as engaged in the compilation and sale of abstracts of title to real property and in making loans and other like business, and consisting of all its records, books, plats, maps, instruments, machines, furniture and fixtures, and all other of its equipment as the same now exists and is located at No. 607 Eleventh Street, Vancouver, Washington, or as the same may hereafter be renewed, added to, or enlarged. ’ ’

After giving the mortgage, the Clarke County Abstract & Loan Company continued in possession of the mortgaged property and continued the abstract business. It failed to make the payments required by the terms of the note and mortgage, and on October 26, 1915, the trustee commenced an action to foreclose the mortgage. While this action was pending, the Clarke County Abstract & Loan Company made photographic copies of all of the books and records of the abstract plant and sold them to Charles B. Sears and C. W. Knowles, to be used in the same county. Afterwards the mortgage was duly foreclosed, and on April 22, 1916, the property was sold by the sheriff and the mortgagee became the purchaser at the sale. Thereafter the mortgagee and the persons for whom she was [463]*463acting as trustee, together with one or two others, organized the appellant corporation, and the property obtained by purchase at the sheriff’s sale was conveyed to it. After the photographic reproductions were sold to Sears and Knowles, they formed the Sears Abstract & Loan Company, which continued to use the photographic copies and to make therefrom abstracts of title to real estate, up to the time of the beginning of this action. On December 26, 1916, the Sears Abstract & Loan Company executed and delivered to the Vancouver National Bank a chattel mortgage covering the photographic copies, together with other personal property. This mortgage was given to secure a bona fide indebtedness owing to the bank. It appears that all of the respondents had actual knowledge of the existence of the mortgage to Jessie M. Wintler and the taking and sale of the photographic copies.

The chief legal question involved is, may a mortgagor of a set of abstract books and records lawfully, and without violating any of the rights of the mortgagee, make photographic copies of such books and records for the purpose of using the same after the mortgage is foreclosed, in the business of making abstracts of title to property, or selling the same to be used for a like purpose. In discussing this question if must always be kept in mind that in this state a mortgage does not serve to convey the title, but creates lien only, leaving the title in the mortgagor. Silsby v. Aldridge, 1 Wash. 117, 23 Pac. 836; Binnian v. Baker, 6 Wash. 50, 32 Pac. 1008; Richter v. Buchanan, 48 Wash. 32, 92 Pac. 782; Nettleton v. Evans, 67 Wash. 227, 121 Pac. 54.

Apparently the question involved here is one of first impression, for no cases in point are cited in the briefs, and the somewhat extended search which we have made fails to reveal any. There is a line of cases cited [464]*464by appellant which holds that an author, at common law, has a property in his manuscript, and may obtain redress against one who deprives him of it, or, by improperly obtaining a copy, endeavors to realize a profit by its publication. The case of Press Publishing Co. v. Monroe, 73 Fed. 196, 51 L. R. A. 353, is illustrative of this principle; but those cases cannot help us here because there the owner was the complaining party, while here the one who complains holds only a mortgage lien. Nor—and for nearly the same reason—can we get any light from that line of cases where a photographer, employed to take certain photographs of the employer, uses his negatives or plates to take additional pictures, to be sold to others or to be put to some other use. Klug v. Sheriffs, 129 Wis. 468, 109 N. W. 656, 119 Am. St. 967, 7 L. R. A. (N. S.) 362; Levyeau v. Clements, 175 Mass. 376, 56 N. E. 735, 50 L. R. A. 397; Douglas v. Stokes, 149 Ky. 506, 149 S. W. 849, Ann. Cas. 1914B 374, 42 L. R. A. (N. S.) 386; Corliss v. Walker Co., 57 Fed. 434, 64 Fed. 280, 31 L. R. A. 283.

The respondents contend that the mortgagor, being the owner of the property, had a right to take these photographs and dispose of them, provided he did thereby no unnecessary damage to the mortgaged property ; that the 'mortgage did not cover the photographs, and therefore could not be foreclosed as to them. The lower court seems to have also taken this view of the case. We cannot believe that the only right which a mortgagee has is to foreclose his mortgage. The mortgagor’s ownership is not unqualified; he may not do with the property as he sees fit; he may use it in the usual and customary way, doing no unnecessary damage; but he may not, over the objections of the mortgagee, use the property in any unusual, uncustomary or unexpected way, and particularly so if such use greatly injures the property or depreciates its value. [465]*465The mortgagee has, and in the very nature of the relation must have, the right at all times to protect the property which gives him security, against any unusual or unnecessary damage. These principles are laid down by Jones on Chattel Mortgages. At § 451 (5th ed.) he says:

“A mortgagee, in case of apprehended danger of loss of the mortgaged property, may have a receiver appointed, even before his right to foreclose has accrued. It is sufficient to authorize the appointment of a receiver that the mortgagor is insolvent, that the property is not sufficient in value to secure the debt, and that there is still danger of its removal beyond the jurisdiction of the court. The power of a court of equity to preserve the mortgaged property from destruction, so that it may answer the purpose of the mortgage, is undoubted. A bill for an injunction and the appointment of a receiver may be sustained, where it is shown that these remedies are proper for the mortgagee’s protection, although the time of payment set in the mortgage has not arrived.”

And, at § 490:

“A purchaser of property upon which there is a valid mortgage who consumes or sells the property or any part of it is liable to the mortgagee for the damages so occasioned him; and it makes no difference that the purchaser took the property in hostility to the mortgage, and denying that it was an existing lien. ’ ’

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Bluebook (online)
184 P. 309, 108 Wash. 461, 7 A.L.R. 152, 1919 Wash. LEXIS 873, Counsel Stack Legal Research, https://law.counselstack.com/opinion/wintler-abstract-loan-co-v-sears-wash-1919.