Inashima v. Wardall
Inashima v. Wardall
Opinion of the Court
On October 21, 1920, one George Koike, a Japanese, being then the owner of a certain automobile, mortgaged the automobile to one S. Inashima, also a Japanese, to secure the payment of a promissory note for $1,000, given to evidence a loan made on that day by Inashima to Koike. In preparing the mortgage the scrivener used a printed form, writing with a typewriter the names of the parties to the instrument and the necessary descriptive matter in
Later on Koike, being in possession of the automobile, sold and delivered it to a Japanese by the name of Yamaguchi, who in turn sold and delivered it to another Japanese, one K. Imai. On the maturity of the note which the mortgage was given to secure, the mortgagee began foreclosure thereof by notice and sale. The officer having the notice for execution seized the property and proceeded to advertise it for sale, whereupon Imai began an action in the superior court to restrain him from so doing, on the ground that he was a purchaser of the automobile for value and without notice, actual or constructive, of the existence of the mortgage. After the service of the complaint upon him, Inashima, the mortgagee, tendered the defense of the action to the county auditor, Norman M. Wardall, and to his official bondsman, the National Surety Company. Neither of these parties, however, appeared, and the mortgagee defended in his own right. He denied the traversable allegations of the complaint, and, by way of affirmative matter, set up his mortgage and asked its foreclosure by the superior court. A trial was had on the merits of the action, at the conclusion of which the court, after certain preliminary findings, made the following findings of fact:
“That on the 15th day of December, 1920, one George Koike was the lawful owner and possessed of*620 the following described personal property, situated in the city of Seattle, King county, Washington, to wit:
“One seven passenger Winton touring car, 1918 model 21-A-, Engine No. 32400, together with all tools, accessories and equipment.
‘ ‘ That on said 15th day of December, 1920, the said George Koike, for a full and valuable consideration, sold and delivered said personal property to one K. Yamaguchi, of Seattle, Washington, representing the same to be free and clear of any and all liens or incumbrances, and the said K. Yamaguchi was a purchaser in good faith for value and had no knowledge, actual or constructive, of any lien or incumbrance thereon.
“That on the 24th day of May, 1921, the said K. Yamaguchi, for a full and valuable consideration, sold and delivered said personal property to the plaintiff, representing the same to be free and clear of any and all liens or incumbrances, and the plaintiff was a purchaser in good faith for value and had no knowledge, actual or constructive, of any lien or incumbrance thereon adverse to him, and immediately prior to said purchase the plaintiff caused the public records of the auditor of said King county, affecting the filing of chattel mortgages or other liens or incumbrances upon personal property and the indexes thereof to be searched, and said indexes failed to show the filing of any chattel mortgage or other lien made or executed by the said George Koike upon said personal property on or about October 21,1920, or within ten days thereafter or at any time, but showed and indicated that said personal property was free and clear of any and all chattel mortgages, liens or incumbrances, and the plaintiff purchased said personal property as clear and unincumbered property in reliance upon said records and indexes and upon the said representations made concerning the same.
‘ ‘ That on or about the 21st day of October, 1920, the said George Koike made, executed and delivered to the defendant Inashima his one certain promissory note in the sum of $1,000, which note became due on January 21, 1921; that to secure the payment of said*621 note, said George Koike made, executed and delivered his certain chattel mortgage upon the above described personal property, dated October 21, 1920, in favor of the defendant Inashima; that thereafter on October 22, 1920, the said defendant delivered said chattel mortgage to the said auditor of King county, Washington, for filing, who thereupon affixed thereto instrument number 1461893, Vault No. 63275 of the records of his office, but he failed and neglected to enter said chattel mortgage in the Chattel Mortgage Index, kept by him for that purpose, under the name of George Koike, as mortgagor, and the name of Koike or George Koike does not appear at all in said index at or about said date as a chattel mortgagor of said personal property or at all, but upon other pages of said index the said auditor misspelled said name as ‘Kioke’ and entered the name ‘George Kioke’ on or about said date in said index, under the index classification ‘Ki,’ as a mortgagor of said personal property under said chattel mortgage; that a searcher of said records and indexes could not be reasonably or lawfully required to search for the name of ‘Koike’ under the index classification ‘Ki’; that the name ‘Koike’ is a Japanese name having an intelligent meaning in the Japanese language and the word ‘Kioke’ has no intelligent meaning in said language; that said index gave to the plaintiff no notice, actual or constructive, of the existence of said chattel mortgage at the time of his said purchase or at all, and the same was not notice to him or to the world of the existence of said chattel mortgage, and the same is void and of no effect as to the title of the plaintiff in said personal property.
“That plaintiff was deprived of said automobile for 14 days, the use of which was reasonably worth $28 for said time; that plaintiff paid storage charges incurred by said sheriff of $5.”
As matter of law, the court concluded that the mortgagee was not entitled to foreclose his mortgage, and that the contestant was entitled to a decree restraining the proceedings theretofore commenced, and to a decree quieting his title in and to the automobile as
After the entry of the foregoing decree, the mortgagee brought the present action against Wardall and the National Surety Company to recover as for a loss of his security, setting forth in his complaint the matters hereinabove related, and further alleging that the automobile was of greater value than the mortgage debt, that no part of the mortgage indebtedness had been paid, and that the mortgage debtor had absconded from the state and had left no property out of which the indebtedness could be paid. The surety company answered by a general denial. Wardall answered by denials and by an affirmative defense, the material part of the latter being as follows:
“That said mortgage contained the name of the mortgagor at the top of the first page in the body thereof in typewriting as ‘George Kioke,’ and also along in the middle of the first page in typewriting in the mortgage clause as said ‘George Kioke’ and again in the acknowledgment thereof on the back of said instrument as ‘George Kioke.’ That said affidavit of good faith, on the back of said instrument, contained the name, ‘George Kioke’ in typewriting and was signed in longhand ‘Geo. Kioke’ before the notary who administered the oath thereto. That the signature upon said mortgage was in longhand and was written and spelled ‘Geo. Kioke’ as nearly as the same could be deciphered, and said defendant and his deputies properly and carefully indexed the said instrument under the name ‘Geo. Kioke.’ And the defendant alleges that by reason thereof he was without negligence in the matter of filing and indexing said mortgage, and that the damage to the plaintiff, if any, was caused by accepting from the said mortgagor a mortgage so faultily and carelessly drawn and signed as to be read by the recording officer as Geo. Kioke, if in truth and fact said mortgagor’s name was George*623 Koike, which this defendant denies, and he, the said plaintiff was negligent in offering the said mortgage for filing in the auditor’s office a mortgage so drawn and executed, and said negligence was the proximate cause of plaintiff’s damage and injury, if any in fact was by plaintiff sustained.”
On the trial of the cause, which was had before the court sitting with a jury, the mortgagee, to substantiate the controverted allegations of his complaint, introduced the judgment roll of the former case; that is, the pleadings, the findings and conclusions of the court and the decree entered therein; introduced evidence tending to show that notice of the pendency of that action had been given to the auditor and his bondsman immediately upon the institution thereof and that the defense thereto had been tendered them; that the mortgage debt had not been paid; that the mortgagor had absconded and was insolvent; that the mortgaged automobile was of a value in excess of the amount of the loan and in excess of the sum for which recovery was sought, and rested his case.
A motion for a nonsuit was interposed by the defendants and denied by the court, whereupon they tendered evidence in support of their affirmative defense. In substance, they offered evidence tending to show that the signature of the mortgagor to the mortgage was so illegibly written that it could not be determined whether the surname was Koike or Kioke from an inspection of the signature alone, and that it was necessary to resort to the body of the mortgage, the acknowledgment, and the affidavit of good faith attached thereto, wherein the name was typewritten, to ascertain its proper spelling; that, in many instances of instruments filed for record, the signatures thereto are so illegibly written, or written in such peculiar characters or in such peculiar style, that it cannot be
The appellants make two principal contentions; first, that the evidence on the part of the plaintiff was insufficient to sustain a judgment in his favor; and, second, that the court erred in sustaining objections to the proofs offered to substantiate the affirmative defense.
The first of these objections requires no extended discussion. The nature of the proofs submitted by the plaintiff, we have outlined in our statement of the nature of the action, and, in our opinion, they cover every essential fact necessary to be proven in order to warrant a recovery. On the general question of the sufficiency of the proofs, therefore, nothing more needs be said. A specific objection, however, was made to
The notice here in question is not a process within the meaning of the statute. It is not a means provided by statute by which a party is brought into court. The party served with it is under no duty to appear and no judgment can he taken against him if he does not appear. It is a notice merely to which the law attaches certain consequences, and the manner and form of its giving is immaterial so long as it imparts the necessary information. The agent in question here was testified to he the “general manager of the company for the state of Washington,” and we think it plain that a
The second contention we think is better founded. The general rule is well settled that where one person is responsible over to another for an obligation to a third person, and the third person sues the second on the obligation, the person sued may make any judgment obtained against him conclusive against the person liable over as to all matters necessarily in issue therein by timely notifying him of the pendency of the action and giving him an opportunity to defend. When, therefore, the liability over is absolute, the judgment rendered of itself is conclusive of the judgment debt- or’s right to recover in an action between him, and the person liable over. Illustrations are found in the instances where a third person sues the master for an injury caused him by the master’s servant. In such cases the master may bind the servant to answer over for any judgment that may be rendered against him by timely notifying the servant to defend, and in a subsequent action by the master to recover against the servant, he may prove his right to recover by merely introducing the judgment roll; this for the' obvious reason that the judgment roll on its face discloses the liability of the servant to answer. But it is at once apparent that there can be instances where the judgment roll does not on its face necessarily disclose a liability to answer over. It may be that the negligence or wrong giving rise to the primary liability was not necessarily the fault of the person sought to be charged secondarily therewith, and that the judgment roll does not determine the fact. In such an instance, the judg
Applying these principles to tbe case before us, it seems clear tbat tbe question tbe defendants sought to litigate was not necessarily determined in tbe suit brought by tbe purchaser of tbe automobile against tbe mortgagee thereof. It was enough in tbat suit for tbe purchaser to show tbat, at tbe time of bis purchase, be bad no actual notice of tbe existence of tbe mortgage and tbat tbe records did not afford constructive notice to bim. Whose fault it was that tbe records were thus defective in no way concerned bim. He could recover whether tbe fault lay with tbe mortgagee or with tbe auditor, and any dispute between these persons bad no place in tbe suit be was litigating. Tbe question, there
It is further said that the matters pleaded and sought to be shown do not constitute a defense on the part of the auditor, but we think otherwise. WThere an instrument is presented for record on which the name of the party bound is so illegibly written as not to be decipherable, and there is nothing else on the instrument to indicate what the true name is, unquestionably it would be within the right of the auditor to refuse to accept it until some person having authority to speak for the parties interested vouched for the name, and that he would not be liable for such refusal even though some right of a person affected by the instrument was thereby lost. But where in the body of the instrument the name plainly appears, although the actual signature be illegible, it is at least doubtful whether he would have such right. Clearly, it would be too much to say that, if he did accept such an instrument and indexed and recorded it in the name as it appeared in the body of the instrument, he is to be held liable as for a mistake, should it subsequently prove that the name so written was not the true name.
On the trial of the cause, the appellants, as part of their proofs, tendered a photographic copy of the chattel mortgage. This offer of proof, as we have heretofore stated, the court rejected. The instrument,
The judgment appealed from is reversed, and. the cause remanded for a new trial.
Case-law data current through December 31, 2025. Source: CourtListener bulk data.