Yetzer v. Young

52 N.W. 1054, 3 S.D. 263, 1892 S.D. LEXIS 63
CourtSouth Dakota Supreme Court
DecidedAugust 17, 1892
StatusPublished
Cited by12 cases

This text of 52 N.W. 1054 (Yetzer v. Young) is published on Counsel Stack Legal Research, covering South Dakota Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Yetzer v. Young, 52 N.W. 1054, 3 S.D. 263, 1892 S.D. LEXIS 63 (S.D. 1892).

Opinion

Kellam, P. J.

The facts in this case necessary to an understanding of the questions raised are.as follows: Plaintiffs claim to be the owners, by assignment, of a chattel mortgage on a stock of goods. The mortgage was given by Childs & Young, a partnership, of which defendant, Charles H. Young, was, at the time of [266]*266these proceedings, surviving partner. Default having been made in payment, as alleged by plaintiffs, and Young refusing to surrender the mortgaged goods under the mortgage, plaintiffs commenced an action, January 20, 1890, in claim and delivery for the possession of the goods, for the purpose of foreclosing their mortgage. Young gave bond, and retained possession of the goods. He answered, alleging full payment of the mortgage debt. In March, 1890, Libbie T. Young, the appellant herein, represented by affidavit to the court in which such action was pending that, on the 7th day of January, 1890, she recovered a judgment against Charles H. Young, as surviving partner of Childs & Young; that on said 7th day of January execution was issued thereon and levied upon the same stock of goods claimed by plaintiffs under their mortgage, then in the possession of said Young as such surviving partner; that the sheriff refused to sell said property under said execution and levy, unless appellant would first pay and satisfy the chattel'mortgage of plaintiffs; that said stock, since the execution of the said mortgage thereon, had remained in the possession of said Childs & Young, and said Young as surviving partner, as aforesaid, and that said Young, as such surviving partner, had, with the knowledge and consent of the mortgagees therein, continued to sell said goods at retail in the usual course of trade, for his own.use and benefit; and that said mortgage was fraudulent and void as against her judgment and execution. Upon such affidavit, and the presentation of her separate answer, the court made an order March 10, 1890, allowing her to intervene in said action and file and serve said separate answer. The answer set up the same matters as the affidavit, and further alleged that the mortgage was fully paid. To this answer plaintiffs replied, denying the allegation of payment, and all the allegations of fact as to the fraudulent character of-the mortgage, and alleging that the intervener’s judgment was obtained by her through fraud and collusion with defendant Young, and for the purpose of defrauding plaintiffs, and that there was no consideration therefor. The practice in this case does not seem to have been technically correct, but no rights appear to have been prejudiced thereby. Upon the trial, after the close of the evidence upon the issues [267]*267made by tbe answer of Libby T. Young, intervener, tbe court, on motion of plaintiffs, struck out all testimony in her behalf, and directed a verdict against ber. To test tbe correctness of this ruling is tbe principal purpose of this appeal.

Tbe first question presented is as to tbe qualifications of an intervener. Our statute respecting intervention, when and bow it may take place, is the same as that of California, and practically like that of Minnesota and Iowa. Any person may intervene “who has an interest in tbe matter in litigation, — in tbe success of either party.” Section 4886, Comp. Laws. Appellant contends that as a simple judgment creditor she bad such “an interest in tbe matter in litigation” as entitled ber to intervene, tbe argument being that tbe object of plaintiffs’ action' was to get possession of tbe goods, to appropriate them to tbe payment of their alleged mortgage, and thus reduce and divert tbe fund out of which she might otherwise collect ber judgment, and that she was directly interested in preventing this. Tbe subject-matter of tbe litigation was plaintiffs’ right to take tbe goods under their mortgage. It went only to tbe possession. In this question appellant could not be concerned, unless she bad some interest in tbe goods that might be affected by such change of possession; We do not think appellant’s interest as a general judgment creditor, either in tbe matter in litigation or in tbe goods, was sufficiently direct or immediate to entitle ber to intervene. Upon this point tbe case of Horn v. Water Co., 13 Cal. 62, is instructive. Plaintiff brought suit upon a note and mortgage executed by tbe trustee of tbe defendant company. Certain creditors of tbe company intervened alleging fraud in tbe execution of tbe note and mortgage, and ■ that they were void. In tbe supreme court petitions for intervention of such creditors only as bad liens upon the mortgaged property were allowed; those showing no such liens were dismissed. In tbe opinion Field, J., says: “Tbe petition of tbe creditor B. does not disclose any right on bis part to intervene. It shows that be was a simple contract creditor, bolding obligations against tbe company, but it does not show that any portion of them was secured by any lien upon tbe mortgaged premises. ~ * ' * To authorize an intervention, therefore, tbe interest must be that [268]*268created by a claim to tbe demand, or some part thereof, in suit, or a claim to a lien upon the property, or some part thereof, which is-the subject of litigation.” In Gasquet v. Johnson, 1 La. 425, a particularly interesting case, because it is understood that our law of intervention came from the Civil Code of Louisiana, the action was upon a bill of exchange drawn by defendant. In plaintiff’s petition the draft was so incorrectly described that no recovery could be had without an amendment. Subsequent attaching creditors claimed the right to intervene for the purpose of objecting to such amendment, on the ground that they had an interest in defeating a recovery by the plaintiff, because the defendant’s property was insufficient to satisfy the demands of all his creditors. The court denied their right to intervene, on the ground that theirs was not “an interest in the matter in litigation,” within the meaning of the statute. Speaking of'an interest of that kind, the court says: “This we suppose must be a direct interest, by which the intervening party is to obtain immediate gain or suffer loss by the judgment which may be rendered between the original parties.” The same doctrine is taught in Bennett v. Whitcomb, 25 Minn. 148.

The “matter in litigation” in the original action in which appellant sought to intervene was plaintiffs’ right to the possession of the goods under their mortgage. In such an action appellant could not intervene without showing that she had some interest in or relation to the property upon which the law would recognize her right to appear for and protect it from going even temporarily into the wrongful possession of another. In this respect there is an analogy between the qualifications of an intervener and one entitled to attack a conveyance as fraudulent. A general creditor, either contract or judgment, may not do it. He must first become interested in the particular property he desires to reach, by attaching his claim to it. In case of real estate, this may be done in this state by docketing a judgment in the proper county, or, in case of personal property, by levying an execution or attachment. The property involved in this case was personal property, and we do not think that appellant, as a judgment creditor merely, was entitled to intervene.

[269]*269It next becomes of interest to inquire -whether appellant had a lien upon this property by virtue of either or any of the several executions alleged to have been issued upon her judgment and levied upon this property. The first execution was issued J anuary 7th, and levied upon these goods January 8th.

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Cite This Page — Counsel Stack

Bluebook (online)
52 N.W. 1054, 3 S.D. 263, 1892 S.D. LEXIS 63, Counsel Stack Legal Research, https://law.counselstack.com/opinion/yetzer-v-young-sd-1892.