Sarpy County State Bank v. H. M. Hinkle & Son
Sarpy County State Bank v. H. M. Hinkle & Son
Opinion of the Court
There is no controversy over the material facts in this case, which may be snmmarized as follows: On July 17, 1893, the defendants H. M. Hinlde & Son were engaged in the mercantile business at Springfield, Sarpy county, and were indebted in large sums to numerous creditors, among others the plaintiff and appellant herein, the Sarpy County State Bank, and the defendants Cyrus K. Spearman, McCord-Brady Company, and the KilpatrickKoch Dry Goods Company. On said date H. M. Hinkle & Son, being indebted to Spearman in the sum of $3,870, to secure the payment thereof executed and delivered to said Spearman a chattel mortgage on their stock of merchandise, which mortgage was duly filed for record at 5:30 o’clock in the afternoon of the same day, and Spearman took immediate possession of the mortgaged chattels. Subsequently, on the same day, the said H. M. Hinkle & Son executed another mortgage upon the same goods, in favor of plaintiff, the Sarpy County State Bank, to secure the payment of a bona fide indebtedness of $1,394, which mortgage was delivered to the bank, and by it filed in the office of the county clerk of Sarpy county
It is very plain that the decree of the court below cannot stand. Plaintiff had a lien on the property second only to Spearman’s mortgage, and it is evident that plaintiff, under the undisputed facts, was entitled to a decree against the latter for the amount of surplus remaining in Spearman’s hands after satisfying the amount of his mortgage debt. It is true that in the replevin suit the Kilpatriclc-Koch Dry Goods Company obtained a judgment against Spearman for this identical money, but that is of no importance here, since the bank was not a party to the replevin litigation, and. is not in the least affected by the judgment entered therein. As between the bank and the dry goods company their rights are to be determined as though the judgment in favor of the latter in the replvin action had never been obtained. H. M. Hinkle & Son were justly indebted to the bank in $1,394, and to secure the payment thereof the mortgage in question was executed and recorded prior, in point of time, to the mortgage given to the dry goods company. Plaintiff has a first lien, for the amount of its debt remaining unpaid, upon the surplus money in the hands of Spearman, and the dry goods company is entitled to a lien upon said surplus, subject to the lien of plaintiff. ’ The decree is reversed and the cause remanded to the district court with directions to render a decree in accordance with this opinion.
Reversed and remanded.
Reference
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