Cumberland Bank v. Baker
Opinion of the Court
This suit is a foreclosure of a chattel mortgage held by the bank. The defendants were the mortgagor, Baker, and also Garrison and Minch, the holders, as partners, of a chattel mortgage which they agreed should be subsequent to the bank’s mortgage, and Garrison individually, in respect to another mortgage by him thereafter received from the mortgagor.
The priority of the complainant’s mortgage has been established in previous litigation in this ease. 12 Dick. Ch. Rep. 231. Among the chattels included in the mortgages was a cow, which, after the making of the complainant’s mortgage, dropped a calf. The receivers appointed under the complainant’s foreclosure sold this calf for $25, but have failed to charge themselves with its price in their account, upon the supposition that this increase was after-acquired property and not covered by the complainant’s mortgage. An exception is filed to their account for their omission to charge themselves with the price obtained for this calf.
As this case is presented by the proofs heretofore offered, and the additional facts stated and agreed upon in the exception, no equity is outstanding in any of the defendants to claim the proceeds of the sale of the progeny of the mortgaged cow. The calf was not existent when the chattel mortgages were made and recorded, but might at any time have come into existence. The complainant’s mortgage was a lien upon the calf’s dam, and when it was made, the defendants Garrison and Minch agreed it should be a precedent lien to their mortgage, and they took their own mortgage upon the said property, including the dam, subject to that agreement. They subsequently took another mortgage to secure the same debt upon the same property, under the belief that they could thus avoid their covenant that the complainant’s mortgage should be first.- This contention has been overruled in the previous de,cisión in'this case. Mr. Garrison, one of the defendants, also took a mortgage from the mortgagor, some months after the complainant’s had been made and recorded, upon the same property, but to secure a pre-existing debt.
The mortgage of the complainant was a good lien when made, upon the possible progeny of the dams mortgaged. This progeny, when the mortgage was made, had no separate existence, and was not-susceptible of immediate delivery and of actual and continued possession as a separate entity, as contemplated by the Chattel Mortgage act, but it had such a potential existence that
The calf, being the progeny of the dam named in the complainant’s mortgage, was not after-acquired property, but had a potential existence when the complainant’s mortgage was made and was included within the lien of that mortgage.
I will advise an order sustaining the exception and ordering the receivers to account for the $25, the price at which they sold the calf.
Case-law data current through December 31, 2025. Source: CourtListener bulk data.