Hope v. Johnston
Hope v. Johnston
Opinion of the Court
The bill, all of whose material allegations are admitted by the demurrer, -was filed May 14th, 1889, and presents a case in which Hope sold to A. D. Johnston, and A. D. Johnston, Jr., on November 80th, 1871, a stock of cattle at the price of $7,800, on twelve months’ credit. The instrument of this date, executed by these vendees, whom we shall when referring to them jointly speak of ' as the John-
The purpose of this bill is not to subject the “Finer de luce” cattle to the payment of the complainant’s judgment obtained May 11th, 1889, against the administratrix of the junior Johnston, as assets of his insolvent estate, and liable, notwithstanding the alleged fraudulent conveyance of the same, to the intestate’s indebtedness. The bill is not framed on this theory. The allegations as to that judgment were, in our opinion, made only with a view to showing diligence or an absence of laches, and overcoming the bar of the statute. The real theory of the bill is, that the “ Finer de hcce” cattle are still subject to the lien of the chattel mortgage of November 30th, 1871; it asks that it be decreed that such writing is a lien on them, and that they be sold to satisfy such lien, and for injunction restraining defendants from interfering with them, and for other consistent relief. The only status given to these cattle, that is adverse to the complainant’s rights, other than that arising between him and the Johnstons from the simple failure to record the mortgage in a lawful manner and the mere lapse of time, is that originating in the deed of trust of March 6th, 1878. It is under this deed that the defendants, other than the administratrix, as they are represented by the bill, claim, and it is proper to ascertain definitely the meaning and effect of the allegations of the bill as to it. The
A mortgage not under seal is “an instrament of writing * * * not under seal,” within the mean
In so far as this bill shows, the foreclosure of the mortgage became barred June 20th, 1870, or five years after the payment made of June 19th, 1874. It is not shown that anything occurred between the complainant and the Johnstons, or between the complainant and the elder Johnston, as trustee, and the beneficiaries, or between complainant and all, either or any of these parties, during these five years, to keep the mortgage alive or prevent the bar of the statute, and not only is this so, but the same is true of the remainder of the thirteen years intervening between such payment and the date of the alleged credit of $5 of July, 1887,
The first section of the act of January 28th, 1853, (Sec. 2, p. 765, McClellan’s Digest,) does not repeal the act of November 15th, 1828, supra. The section declares in effect, as does section 1 of the act of January 30th, 1838, (Sec. 1, p. 376, Thompson's Digest, and p. 765, McClellan’s Digest,) that all instruments of wilting made with the intention of securing the payment of money shall be deemed and held to be mortgages, (Weed v. Standley, 12 Fla., 171, 172,) and subject to the same rules of foreclosure, and the other provisions of the act were intended to prevent a vesting in the mortgagee of the legal title and a right to possession through the mere failure of the mortgagor to pay the debt secured, and to make a mortgage no more than a lien on the property mortgaged, and to preclude any claim by the mortgagee to possession through such default of the mortgagor on a mere decree of foreclosure, but it was not the purpose or effect of this act to prevent the delivery of personal property as a feature ' of the mode of making a valid mortgage, nor to otherwise affect the existing modes of 'mortgaging chattels.
Whatever rights the complainant may have through his jugdment are not prejudiced by our conclusion, because they are not involved in this proceeding.
The decree is affirmed.
Reference
- Full Case Name
- William Hope v. Lula I. Johnston, as Administratrixs.
- Cited By
- 5 cases
- Status
- Published
- Syllabus
- 1. A chattel mortgage not under seal is an instrument of writing not under seal within tlie meaning of the provision of the statute of limitations of February 27th, 1872, (Sectiou 10, p. 783, McClellan’s Digest.) that actions upon any contract, obligation or liability, founded upon an instrument of writing not under seal must be commenced within five years after cause of action lias accrued. 2. Where no delivery of the chattels intended to be mortgaged is made within twenty days after the execution of the mortgage, a legal record of the mortgage instrument under the act of November loth, 1828, (Section 1, p>- 213, McClellan’s Digest,) is essential to the creation of a lien on the chattels, even as between the xiarties to the mortgage, but the twenty days is not a limitation upon the time for recording it; yet the lien of the mortgage may be lost by laches in recording the instrument. 3. The chattels described in a written instrument intended as a mortgage were not delivered within the time prescribed by the statute. Within two years and about six months after the execution of the instrument large payments were made on the debt intended to bo secured. No other payment was made for about-thirteen years, when the mortgagors made a small payment. Five years and about four months after the execution of the instrument it was put on record, but without acknowledgment or proof of its execution. About seven years after its execution one of the mortgagors conveyed part of the chattels to the other mortgagor in trust for the benefit of daughters of the latter, who were sisters of the former, which conveyance is charged to have been made and taken for the purpose of defeating the lien of the alleged mortgage, and to have been without consideration. Two years after the last payment a judgment at law for the balance of the indebtedness was obtained by the mortgagee against the administratrix or the mortgagor who had made the conveyance in trust. The mortgagors died insolvent after the last payment. Seventeen years after the execution of the alleged mortgage a bill in equity was filed against the administratrix and the beneficiaries of the deed of trust, to foreclose the instrument as a mortgage on the chattels conveyed by the deed of trust: Held, That the consummation of the lien of the mortgage was lost by the mortgagee’s laches in failing to record the instrument. 4. The act of January 28th. 1833, (Sections 2 and 3, pages 705-6, McClellan's Digest,) declaring what instruments shall be deemed mortgages, and subjecting them to the ordinary rules as to foreclosures of mortgages, and declaring that no right of possession to the property mortgaged shall vest in the mortgagee through the simple failure of the mortgagor to pay the debt secured, etc., does not‘repeal the provisions of the act of November 15th, 1828, (Section 1, page 213, McClellan’s Digest,) making the delivery of the property or the recording- of the mortgage instrument, an essential to a chattel mortgage. 5. Where the real purpose of a bill, as shown by its general framework and prayer, is to have an instrument declared a lien or mortgage on certain chattel property, and to restrain certain parties, who claim the property under a deed of trust charged to have been made by one of the alleged mortgagors in fraud of and to defeat the mortgage, from, interfering with the property, it cannot, on account of allegations showing that a judgment at law has been obtained against the administratrix of the mortgagor who made such deed of trust, and that his estate is insolvent, be treated as a bill to subject the property to the payment of such judgment as being assets of his estate and liable, notwithstanding- the alleged fraudulent conveyance, to the intestate’s indebtedness.