Smith v. Donahoe
Smith v. Donahoe
Opinion of the Court
This is an action by the plaintiff to recover of fhe defendant, as sheriff of Minnehaha county, damages for aji
It is alleged in the complaint that in September, 1893, one L. M. Banks, being the owner and in possession of certain described personal property situated in a certain barber shop in the city of Sioux Falls, mortgaged the same to Edmison and Jameson to secure the payment of a promissory note for the sum of $672, with interest; that said mortgage was duly filed for record; that thereafter, and before the 25th day of September, 1897, said Jameson sold, assigned, and transferred said chattel mortgage, with the note it was given to secure, to the respondent; that no part of the same has been paid, and that the same is now due and owing to the plaintiff; that on the 1st day of September, 1897, and before the seizure thereinafter mentioned, said note, with interest, became due, and said Banks failed to pay the same or any part thereof, and that thereupon, pursuant to said mortgage, the plaintiff became entitled to foreclose the same, and to take immediate possession thereof for that purpose; that thereafter, in said month of September, 1897, the appellant, as sheriff of Minnehaha county, under and by virtue of a chattel mortgage made and executed by said L. M Banks and-Banks, co-partners as Banks Bros., to one C. C. Carpenter, to secure the' payment of $500,
It is contended on the part of the appellant that the allegations of the complaint do not show a cause of action against the defendant, and in favor of the plaintiff, for the reasons that the allegations of the complaint show conclusively that there was a legal sale by the appellant as sheriff of the property described and covered by the senior mortgage, under a legal statutory foreclosure of such mortgage, and that' the money claimed to have been converted by the appellant was the surplus in his hands after paying the amount due upon said senior mortgage and the costs and expenses of foreclosure, and the respondent claims title to, and right of possession of, such surplus solely as a subsquent lienholder by virtue of his junior mortgage. Appellant further contends that by Section 8, C. 26, Laws 1889, it is provided that, in case of a sale of the mortgaged property, the officer shall — First, pay all costs and expenses of the sale; second, shall pay the amount of themort
The complaint was fully sustained by the evidence in the case, in that it was clearly shown that in the respondent’s mortgage was included substantially the same property that was included in the prior mortgage. At the time of the sale of the property under the prior mortgage, the note and mortgage of the respondent were past due. It would seem, therefore, from the facts in the case, that the respondent was clearly entitled to the surplus remaining upon the sale of the mortgaged property under the prior mortgage, after payment of all that was due thereon aud costs.
It is further contended on the part of the appellant that there was property included in the prior mortgage that was
Appellant further contends that, inasmuch as respondent’s interest in the surplus was only an equitable lien or interest, it could only be enforced and become operative in an equitable action, and he bases this contention upon the theory that a mortgagor in this state is not vested with title to the mortgaged property, but only as a lien thereon for the amount of the -debt due him. While it is true that a mortgagee acquires no title to the property until the foreclosure and sale of the same, yet it does not follow that he. does not have such an interest as can be protected by an action at law. Actions are constantly brought against officers by mortgagees for the conversion of the mortgaged property, and it has not heretofore been questioned as a proper proceeding. A mortgagee in possession of mortgaged property may maintain an action of trespass or
It is further contended on the part of the appellant that there was neither an allegation in the complaint nor evidence tending to show that respondent’s mortgage was the next succeeding lien to the one upon which the property was sold, but we think there is no merit in this contention, as the entire case was tried upon the theory that the respondent’s mortgage constituted the next lien in order upon the mortgaged premises, and, if it was not, the appellant could have easily shown in his defense that he was holding the surplus in his hands for a subsequent lienholder, who was entitled to it in preference to the respondent. As it does not affirmatively appear that the mortgage of respondent was not the next in order, we must presume, in support of the judgment of the court below, that it was such. Finding no error in the record, the judgment of the circuit court is affirmed.
Reference
- Full Case Name
- Smith v. Donahoe, Sheriff
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- Syllabus
- 1. Under Laws 1889, O’. 26, §8, providing Unit in case of the sale of mortgaged chattels on foreclosure the officer shall pay — First, all costs and expenses of the sale; s.-emtd. th mortgaged d bt; and, third, shall pay the balance to the own r of the propirl.v, — a junior mortgagee of the property, whose mor'gngo is due, is posses-u d of the mortgagor’s right to a remaining surplus, nnd miy maintain trover against an officer refusing to pay such surplus to him in satisfaction of his claim. 2. Where a junior chattel mortgage contains a clause covering- ‘-all other goods not listed above, in the bather shop,” etc., of the mortgagor, such clause is sufficient to include “a subscription list for tickets,” described in the senior mortgage, hut not specifically mentioned in the junior instrument; and hence the two mortgag-es sufficiently cover the same property so as to entitle a junior mortgagee to a surplus remaining on sale of the property, after satisfaction of the senior mortgage. 3. Where a junior chattel mortgage fails to include in its description of the property “a subscription list for tickets” named in a senior mortgage, and on the trial of an action by the junior mortgagee to recover from an officer a surplus remaining after foreclosure sale under, and satisfaction of, the senior mortgage, it appears that the subscription list was worthless, there is not such a variance in the descriptions of the property in the several instruments as to defeat plaintiff’s recovery. 4. Where mortgaged chattels are sold by the sheriff under foreclosure proceedings, and the mortgage satisfied, a junior incumbrancer may maintain trover to recover a surplus remaining in the officer’s hands, and is not rrstrieted to a suit in equity, since a mortgagee’s interest is one which may be protected by an action at law, though he have only a lien on the property, and not title thereto. 5. Where, on trial of tin action by a junior mortgagee of chattels to recover from an officer a surplus remaining after foreclosure sale under a senior incumprance and satisfaction thereof, it does not affirmatively appear that plaintiffs mortgage was not next in 'succession, it will he presumed on appeal, in support of a judgment in his favor, that if was so.