H. A. V. Post v. Berwind-White Coal Mining Co.
H. A. V. Post v. Berwind-White Coal Mining Co.
Opinion of the Court
Opinion by
The hinge of this case is the character of the sale to Stevens. It maybe conceded, as it was by the learned ref eree, that Mundy, Sharp & Busch were vendees in possession, and that the outstanding legal title in Post being merely security to the vendor for the purchase money, could not prevail against an attaching creditor of the vendees. For the same reasons a bona fide purchaser for value if without notice would take a superior title and if with notice, though he would take subject to the legal title as security for the purpose named, yet his title would be good as against' all others.
The learned referee finds that Stevens “ actually, for a valuable consideration, purchased, took possession of, and thereafter exclusively operated the plant.” This puts an end to any question of constructive fraud. It is true that the location and use
With this cardinal fact thus established, the solution of the three questions presented by the appellant is not difficult.
First, it is argued that even if Stevens’ title is good, it cannot be set up to help the plaintiff, Post. It is true that the rule in sheriff’s interpleaders is that the claimant must recover on his own title and not on one outstanding in a third person, but it has no application here because Post’s title is good against all the world but certain excepted parties, to wit: creditors of the Dredging Company having a lien by levy or attachment on the property, and such lien must be acquired while the property is in the ownership or possession of the debtor. The attaching creditor here had no such lien, for both title and possession had passed out of its debtor, the Dredging Company, before its attachment was levied. There was no title or interest of the Dredging Company left for the attachment to grasp, for it had all passed to Stevens prior to the levy. The attaching creditor was therefore not within the excepted class, and as already said, against all others, the legal title of Post was good and must prevail.
Secondly, the question of legal or constructive fraud in the sale to Stevens has already been disposed of. The referee finds that there was no collusion or fraud in fact. It is true the change of ownership was not made as apparent as would have been prudent in view of the circumstances and the dealings of the parties Mundy, Sharp and Busch from whom he bought, but there seems to be no doubt that Stevens paid a fair price and thereafter operated the plant himself, with his own money, including repeated payment of this very appellant’s coal bills with his own check. We think on the evidence that the referee was entirely correct in his view of the facts.
Thirdly, the appellant argues that even if the title and possession of Stevens were valid, yet the Dredging Company hav
Judgment affirmed.
Reference
- Full Case Name
- H. A. V. Post, Trustee v. Berwind-White Coal Mining Co.
- Cited By
- 2 cases
- Status
- Published
- Syllabus
- Vendor and vendee — Ghange of possession — Fraud upon creditors. Certain dredges and scows used in the work of removing islands in a river were sold while so employed, the vendor retiring and the vendee coming in and taking possession. Held, that the possession of the vendee was good as against attaching creditors of the vendor; such possession being as sufficient as if the vendee had removed the property to a new place. Collateral security — Lien for debt — Parties—Purchasers and creditors. Where the vendees of personal property are in possession, but the legal title of the property is in a trustee as security to the vendor for the payment of the purchase money, such legal title cannot prevail against a bona fide purchaser for value without notice, or against creditors having a lien by levy or attachment acquired while the properly was in possession of the debtor vendees, but is good against all others. Tortious possession — Debtor and creditor — Lien of levy. Where a bona fide vendee of personal property for a valuable consideration takes possession under his purchase, and subsequently the vendors, forcibly and without right, repossess themselves of said property, such tortious possession does not make said property subject to levy by the creditors of said vendors.