Zachry v. Industrial Loan & Investment Co.

186 S.E. 832, 182 Ga. 738, 1936 Ga. LEXIS 553
Supreme Court of Georgia·Decided July 2, 1936·No. No. 11077·Published·Cited by 16 cases

Opinion

Bussell, Chief Justice.

On November 14, 1936, the Industrial Loan & Investment Company foreclosed, in the municipal court of Macon, a bill of sale executed by Alfred Mabry, which conveyed certain personal property and recited that it was given for the purpose of securing a note for $345 of even date therewith, “as well as any other indebtedness the grantor may hereafter owe to the company, in whatever capacity and however evidenced, the total of which will with the indebtedness above described not exceed the sum of $350.” On the following day W. H. Zaehry filed in Bibb superior court his petition against Mabry, praying for equitable foreclosure of a bill of sale executed by him to Mabry, conveying substantially the same property as that described in the Industrial Loan & Investment Company’s bill of sale, and praying for appointment of a receiver. By amendment Zaehry prayed that Industrial Loan & Investment Company be restrained from further proceeding with the foreclosure in the municipal court, and that it be made a defendant in the equitable proceeding. A rule nisi was issued, calling on the Industrial Loan & Investment Company to show why it should not be required to intervene in the superior court, and on a hearing the court passed the following order: “The within rule nisi coming on to be heard, and the Industrial Loan & Investment Company having answered in response to said rule and having consented to file its intervention and be made a party in the within case upon the express condition that it not be taxed with any cost in this proceeding as against its priority claim alleged in the sum of $350: it is therefore ordered [740] that said rule nisi be made absolute, and that Industrial Loan & Investment Company be required to file its intervention herein and be made a party plaintiff upon the express condition that whatever amount it shall be determined that it be entitled to, under and by virtue of its secured and priority claim, shall be ordered paid to it without deduction for any part of the costs of this proceeding.” In response to this order the Industrial Loan & Investment Company filed its intervention praying that it be given a prior lien on the property described in its bill of sale to the amount of $350.

J. H. Porter filed an intervention setting up that Mabry and David T. Bussey had been in partnership under the name of Bussey-Mabry Manufacturing Company; that on December 1, 1933, Mabry came to intervenor and stated that the firm of Bussey-Mabry Manufacturing Company owed T. T. Blakely $1000 secured by a bill of sale to the personal property of the partnership; that if Porter would lend or secure for Mabry $1000 with which to pay Blakely, Mabry would have the note and bill of sale transferred to Porter as security; that Porter thereupon indorsed Mabry’s note at a named bank, and Mabry thus procured the money and paid Blakely, but no transfer of the papers was made as Mabry promised; and that Porter was still liable as indorser on the note on which Mabry obtained $1000. He prayed that he be decreed to be the owner of said note and bill of sale, and that his claim be decreed to be a prior lien on the property described. David T. Bussey filed an intervention asserting that the partnership of Bussey-Mabry Manufacturing Company had been dissolved, but that Mabry had failed to account with Bussey for Bussey’s share of the business. He prayed for an accounting of the partnership property, and that no lien be awarded to other creditors of Mabry, except subject and inferior to Bussey’s claim.

By consent the case was submitted to the judge to pass on all issues of law and fact. After hearing evidence he made a finding of fact, and rendered a final decree. This decree adjudged Porter to be the owner of the Blakely note and bill of sale, and awarded to him a special lién on the property covered by this bill of sale for $1000 and interest. The Industrial Loan & Investment Company was awarded a lien on such of the property covered by its bill of sale as was not included in the Blakely instrument, to the [741] extent of $350. Zachry was decreed a lien on the property described in his bill of sale (except such as was included in the Blakely bill of sale), subject to the $350 lien awarded to the Industrial Loan & Investment Company. (See Bussey v. Porter, ante, 727). Zachry’s motion for new trial was overruled, and he excepted. He assigned error also on the order relieving Industrial Loan & Investment Company of the payment of cost. The grounds of the motion for new trial appear hereinafter.

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Zachry v. Industrial Loan & Investment Co., 186 S.E. 832, 182 Ga. 738, 1936 Ga. LEXIS 553 (Ga. 1936).

186 S.E. 832 (Zachry v. Industrial Loan & Investment Co.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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