Sauerwein v. Renard Champagne Co.
Sauerwein v. Renard Champagne Co.
Opinion of the Court
This is an attachment suit. The plaintiffs recovered judgment against the defendant both on the plea in abatement, and on the trial of the merits. The errors assigned relate exclusively to the trial of the plea in abatement, and may be summarized under two heads, namely: First. That the-verdict was informal because it was a general verdict for the plaintiffs, although the grounds of attachment stated in the affidavit were numerous. Second. That the verdict is not supported by substantial evidence.
If we understand the defendant’s contention correctly it is this: An unrecorded mortgage while it will not support a claim of title against anyone claiming subsequently under the grantor, is not characterized as a fraudulent conveyance by section 5176 of the statute. It necessarily results from this that before the omission of record can confer a right of attachment, it must-appear that the plaintiff has been defrauded in some way by that act. As to a subsequént creditor there-may be a presumption that by the withholding of the-mortgage from record, he was induced to extend a credit to the debtor which he otherwise would not have done, but this can not be the case as to a prior creditor who could not possibly have been influenced in his-action by the existence or nonexistence of the mortgage. As the plaintiffs sold the goods in October, 1892, they stand in the position of antecedent creditors. This contention of the defendant is sound and borne out by-decisions in other states. Jones on Chattel Mortgages,. 245. An unrecorded mortgage is void as against an attaching creditor who has other grounds of attachment-but the omission of record where the mortgage is given
The case, however, is entirely different when the mortgage is considered as a conveyance made to the grantor’s own use.' The first section of the statute on fraudulent conveyances renders all instruments of that character fraudulent and void against creditors existing and subsequent, hence if the mortgage was made with such a purpose, it does furnish a ground of attachment as being fraudulent in law. It is decided that if any part of the purpose be one to make the instrument one to the grantor’s own use, the instrument will be one fraudulent in law. Fraud in law furnishes ground for attachment as well as fraud in fact.
Where a chattel mortgage is executed by the debtor on merchandise, and he is permitted to remain in its control and to dispose of it in the usual course of trade without accounting to the mortgagee for the proceeds, such fact is some evidence of an antecódent agreement to that effect. That such was the understanding between the mortgagor and mortgagee may be shown by implication. The inferential evidence may be so conclusive in its character as to make the mortgage fraudulent as a matter of law, and we so decided in the recent case of Mathes v. Staed, 67 Mo. App. 401; or it may be disputable, and then it is a question for the jury whether the inference should be drawn or not. Bullene v. Barrett, 87 Mo. 185. The failure to record the mortgage by prearrangement between the mortgagor and mortgagee, for a number of months after .its execution, is entitled to consideration in this connection, because the evident purpose of this was not to impair the credit of the mortgagor, and his credit was only of importance to him as a trader; that is, a buyer and seller of
the judgment is affirmed.
Case-law data current through December 31, 2025. Source: CourtListener bulk data.