Demers v. Graham

Decision Date28 December 1907
Citation93 P. 268,36 Mont. 402
PartiesDEMERS v. GRAHAM, Sheriff, et al.
CourtMontana Supreme Court

Appeal from District Court, Missoula County; F. C. Webster, Judge.

Action by Alexander L. Demers against Davis Graham, sheriff, and others. From a judgment for plaintiff, M. H. Prideaux appeals. Reversed and remanded.

Harry H. Parsons, for appellant.

Marshall & Stiff, for respondent.

SMITH J.

The only question for determination in this case is whether a chattel mortgage of certain cows covers their calves in gestation at the time the mortgage was executed, but born prior to foreclosure; there being no reference in the mortgage to the increase of the cows. The defendant, Graham holds in his possession, as sheriff of Missoula county, the sum of $609, the proceeds of the sale of 87 calves, sold by him under a stipulation that he should hold the proceeds until the final determination of this action. The plaintiff claims the money by virtue of the fact that he held a chattel mortgage on the mothers of the calves at the time the young were born. The appellant, Prideaux, claims to be entitled to the sum by virtue of a sale of the calves to him by Sloan the mortgagor, after the sheriff had seized but before he sold the same under plaintiff's mortgage. Prideaux set forth in his answer the respective claims of the parties, as above recited. The district court of Missoula county sustained a general demurrer to the answer, and, in default of further pleading by Prideaux, entered a judgment in favor of the plaintiff and against the defendant Graham, as sheriff, for the sum of money in dispute. From that judgment Prideaux has appealed.

The law is well settled in this state that a chattel mortgage only creates a lien and does not pass title from the mortgagor to the mortgagee. Bennett Bros. Co. v. Tam, 24 Mont 457-467, 62 P. 780; Mueller v. Renkes, 31 Mont. 100 77 P. 512. Such lien transfers no title. Civ. Code, § 3750. The question of the extent of the lien created, in those jurisdictions where no title passes, has been a fruitful source of litigation for many years. The immediate question that we are to decide has never been before this court, and we feel therefore that in the determination of the same we should point out what seem to us to be the principles involved, and not merely cite the precedents of the courts. The Supreme Court of California, in the case of Shoobert v. De Motta, 112 Cal. 215, 44 P. 487, 53 Am. St. Rep. 207, took occasion to examine and differentiate the decisions on this subject in the following language: "It has been held in some states that the lien of a mortgage of domestic animals extends to the increase of the animals during the life of the mortgage, whether the terms of the mortgage include such increase or not, and, following these decisions, such a rule is stated in text-books upon chattel mortgages. It will be found, however, upon examination of these cases, that the decisions therein are based upon the principle of the common law, which was in force in those states, that by the mortgage the mortgagee is vested with the title to the mortgaged property, and becomes the owner thereof; and that in the case of domestic animals, applying another rule of both the common and the civil law, that 'the brood belongs to the owner of the dam or mother, partus sequitur ventrem' (2 Blackstone's Commentaries, 390), he thereby becomes the owner of such increase, and, being the owner, his title in any action at law must prevail. The earliest application of this rule was in the case of a mortgage of a female slave (Hughes v. Graves, 1 Litt. 317), which was decided in Kentucky in 1822, and was afterward followed in Maryland in 1836, in the case of Evans v. Merriken, 8 Gill. & J. 39, which also involved the offspring of a female slave which had been mortgaged; and these cases are cited as the authority upon which cases involving the same question have been decided in other states, in some instances referring also to the principle upon which the rule rests, and in others merely referring to the cases as an authority (Cahoon v. Miers, 67 Md. 573, 11 A. 278; Gundy v. Biteler, 6 Ill.App. 510; Ellis v. Reaves, 94 Tenn. 210, 28 S.W. 1089). The rule has also been stated in many other cases in which the question was neither involved nor decided ( Kellogg v. Lovely, 46 Mich. 131, 8 N.W. 699, 41 Am. Rep. 151; McCarty v. Blevins, 5 Yerg. (Tenn.) 195, 26 Am. Dec. 262; Gans v. Williams, 62 Ala. 41); and there is still another line of decisions in which it has been sought to uphold the propriety of the rule by holding that the increase which was in gestation at the execution of the mortgage was inferentially included therein as a part of the mortgaged property (Funk v. Paul, 64 Wis. 35, 24 N.W. 419, 54 Am. Rep. 576; Rogers v. Hyland, 69 Iowa, 504, 29 N.W. 429, 58 Am. Rep. 230; Edmonston v. Wilson, 49 Mo.App. 491). Another line of decisions limits this application of the rule by holding that the increase is subject to the lien of the mortgage only for so long a time as the young are in a state of nurture from the mother. Rogers v. Gage, 59 Mo.App. 107; Darling v. Wilson, 60 N.H. 59, 49 Am. Rep. 305; Forman v. Proctor, 9 B. Mon. (Ky.) 124. The want of logical sequence in this limitation has been felt by the courts, and some of them have sought to place their decision upon the fact that, while the young were following the mother, a purchaser from the mortgagor had notice by that fact that it was her offspring, and subject to the mortgage, and was thus prevented from claiming to be a purchaser in good faith. Placing the decision on this ground is, however, necessarily a repudiation of the principle upon which all the above cases rest, for, if the mortgagee is in fact the owner of the increase, the question of good faith in purchase from the mortgagor is immaterial. Prior to 1873 the giving of a chattel mortgage in this state vested the mortgagee with the title to the property mortgaged (Heyland v. Badger, 35 Cal. 404), and, while this rule of law prevailed, the foregoing decisions would have been applicable. The Civil Code, however, went into effect at the beginning of that year, and under its provisions the mortgagor is not, by the execution of the chattel mortgage, divested of his title to the property, but still remains its owner, while the mortgagee has only a lien thereon. Civ. Code, § 2888; Bank of Ukiah v. Moore, 106 Cal. 673, 39 P. 1071. Consequently the foregoing decisions cannot be regarded as having authoritative force, but the rights of the parties must be determined upon the general principles controlling the relations between a...

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