Hilsdorf v. First State Bank of Regan
Hilsdorf v. First State Bank of Regan
Opinion of the Court
Tbis is an appeal from a judgment and from an order denying a motion for a new trial, in an action of claim and delivery. Tbe action was tried in tbe district court of Burleigb county, before tbe court, without a jury. Tbe subject-matter is a check for $2,050.50, representing tbe proceeds of tbe sale of a car load of rye. Tbe facts are as follows: Tbe plaintiff was tbe owner of tbe land upon which tbe rye was raised; the land was leased to A. N. and Lloyd Davenport; tbe rye was seeded in tbe fall of 1918, and tbe lease, executed about the time of tbe seeding, contained a stipulation to tbe effect that tbe lessees mortgaged their interest in all crops raised on the premises during tbe life of the lease to secure all money advanced, paid to, or out for, tbe lessees, by tbe lessor, and to secure tbe plowing back' of tbe lands in the fall. Another lease, containing the same stipulation, was executed on tbe 10th of April, 1919. Under these leases, tbe plaintiff was entitled to one half tbe crop as rent. Tbe cheek in question was given for rye raised under the lease, and was made payable to the order of A. N. Davenport, J. E. Hilsdorf, and tire First State Bank of Eegan. By stipulation of tbe parties, tbe check was cashed
Both parties upon this appeal concede the priority of a mortgage lien existing in favor of the Fishman Mercantile Company, to secure the payment of two notes aggregating $283.30, with 10 per cent interest.
In the court below judgment was entered in favor of the plaintiff for the amount of his advances, which were found to be $506.14, with interest from April 1, 1920, and costs.
The principal contention upon this appeal is that the evidence is insufficient to support the finding and conclusion of the trial court, to the effect that the plaintiff’s lien for advances under the lease is prior to the defendant’s chattel mortgage lien on the rye. In support of this contention it is urged that the testimony of' one Garness, and of both the Davenports, clearly establishes a waiver of the plaintiff’s lien in favor of the mortgage lien of the bank, and that their testimony is further supported by additional circumstantial evidence, while it is controverted only by the testimony of the plaintiff. Garness testified that Lloyd Davenport, A. N. Davenport, and the plaintiff all came to the bank together, when they made, or renewed, the leasing contract covering the west half (WJ4) of section 33 — 144—79 ; that it was understood between all of them that Lloyd Davenport was buying a team from Hilsdorf, the plaintiff, for which the latter required security, and that as additional security, he, the plaintiff, should have a - first mortgage on the Davenport’s share of the flax crop. lie further testified “we had talked it over between us that Davenports would give us a first mortgage on the crop, but Mr. Hilsdorf was to have first on the flax as additional security with (for) the team, and that the bank took a chattel mortgage covering the crop while all four were present.” The testimony as to the understanding that the bank should have a first
There is a further contention to tbe effect that the plaintiff, through neglect to enforce tbe security, which was admittedly first, upon the flax crop, should be prevented from taking priority over defendant as to the rye. We think the record clearly shows that the flax crop was dissipated more through agencies over which the defendant had no control, than through his own negligence. It was practically destroyed by reason of early snows and the opening of the range for pasture purposes. At any rate it turned out to be of little value, and it does not appear that the plaintiff is primarily responsible for its loss.' The judgment appealed from is affirmed.
Concurring Opinion
(specially concurring). My understanding of the evidence and of the meaning of the principal opinion is, that the defendant bank had actual notice of plaintiff’s mortgages, which he has by reason of the mortgage clause in each of the leases. If this is true, and I think it is, the matter of the time of filing defendants’ chattel mortgages or the lease, is immaterial.
I agree with the conclusions of the principal opinion.
Reference
- Full Case Name
- J. R. HILSDORF v. THE FIRST STATE BANK OF REGAN, a Corporation, and A. M. Davenport
- Status
- Published