Erickson, Matter of

• Decision Date: 26 March 1987
• Docket Number: No. 86-2497,86-2497
• Citation: 815 F.2d 1090
• Parties: Bankr. L. Rep. P 71,725 In the Matter of Marie ERICKSON, Debtor-Appellee. Appeal of DORCHESTER STATE BANK.
• Court: U.S. Court of Appeals — Seventh Circuit

Page 1090

815 F.2d 1090

Bankr. L. Rep. P 71,725

In the Matter of Marie ERICKSON, Debtor-Appellee.

Appeal of DORCHESTER STATE BANK.

No. 86-2497.

United States Court of Appeals, Seventh Circuit.

Argued Feb. 23, 1987.

Decided March 26, 1987.

Jay R. Tlusty, Russell & Tlusty, Merrill, Wis., for appellant.

Terrence J. Byrne, Byrne Law Office, Wausau, Wis., for debtor-appellee.

Before BAUER, Chief Judge, and CUMMINGS and EASTERBROOK, Circuit Judges.

EASTERBROOK, Circuit Judge.

Wis.Stat. Sec. 815.18(6), which makes certain property unavailable to satisfy a civil judgment, allows the judgment debtor to exempt 8 cows, 10 pigs, 50 chickens, 2 horses or 2 mules, 10 sheep, one year's feed for the livestock, and some farm equipment, including: "one wagon, cart or dray, one sleigh, one plow, one drag, one binder, one tractor not to exceed in value the sum of $1,500, one corn binder, one mower, one springtooth harrow, one disc harrow, one seeder, one hay loader, one corn planter," and miscellaneous tools worth as much as $300. Debtors in federal bankruptcy cases sometimes may exempt the property that states protect from civil execution. See 11 U.S.C. Sec. 522(b)(2)(A). They may use this exemption for "implements, professional books, or tools, of the trade of the debtor", see Sec. 522(f)(2)(B), even though they have given their creditors security interests in the items. In this bankruptcy case, where the parties have agreed that the debtor may keep as an "implement" or "tool of the trade" any asset mentioned in Wis.Stat. Sec. 815.18(6), we must decide whether a baler is a "hay loader" and whether a haybine is a "mower". (We need not and do not decide whether the agreement was provident.)

A baler not only loads hay on a wagon but also ties it in bales; a haybine not only mows hay but also conditions it. Both the bankruptcy judge and the district judge concluded that the extra functions of the machines did not prevent their exemption under Sec. 815.18(6). In an earlier case however, a different bankruptcy judge held that a baler with thrower is not a "binder", a row corn picker a "corn binder", or a bale elevator a "hay loader" for purposes of Sec. 815.18(6). In re Flake, 33 B.R. 275 (Bkr.W.D.Wis.1983). Dorchester State Bank, which had security interests in the baler (worth $400) and the haybine (worth $1,500), maintains on appeal that it is no more sensible to call a baler a "hay loader" or a haybine a "mower" than it is to call a row corn picker a "corn binder" or a snowmobile a "sleigh" within Sec. 815.18(6). The district court's order, 63 B.R. 632, leaves nothing else to do in this bankruptcy case, so the decision is "final" and appealable under 28 U.S.C. Sec. 158(d). See also In re Jones, 768 F.2d 923 (7th Cir.1985).

The problem in this case comes from the fact that technology has done more to change farm implements than the Wisconsin legislature has done to change Sec. 815.18(6). The "mower" and "hay loader" were added to the list in 1935, and Sec. 815.18(6) has been unchanged (with an immaterial exception) since then. The statutory list comprises the equipment that in 1935 would have kept a small farm in operation. But small farms now use a different set of equipment. We concentrate on the haybine, because the same principles influence the treatment of both haybine and baler. The mower, which cuts hay, has been succeeded by the haybine (also called a "mower-conditioner"), which cuts and crushes hay in a single operation so that the hay dries faster. If the statute applies only to farm implements customary in 1935, and therefore omits the haybine, it does not achieve its purpose today; yet if the statute exempts all successors of the listed equipment, technological change may dramatically enlarge the exemption without legislative consideration. One need only think of the technological successor of the statutory "binder"--the self-propelled combine, which may be worth $1 million. Asked at oral argument if a combine would be exempt under Sec. 815.18(6), Erickson's counsel replied that it would. That cannot be right, yet neither is it appropriate to say that the statute covers only machines called "mowers".

This is so in part because language evolves. Janitors have become custodians; garbage collectors have become sanitary engineers; hearing examiners turned into administrative law judges; referees in bankruptcy are now bankruptcy judges; employees are terminated rather than fired, and spies are "terminated with extreme prejudice" rather than assassinated. The longer the time, the more the language changes. Hamlet says to Guildenstern in Act II, scene 2: "I am but mad north-north-west: when the wind is southerly I know a hawk from a handsaw." He means that he is feigning madness, shown because he can tell one bird from another when he wants. (To Shakespeare, a "handsaw" was a heron--or so some scholars believe. We stand clear of the debate about what exactly this line means.) If Sec. 815.18(6) said that a farmer may exempt "8 cows, 10 pigs, 50 chickens, 2 horses or 2 mules, 10 sheep, 1 hawk, and 1 handsaw", that we now think of a handsaw as a tool would not subject the handsaw's value to the $300 limit the statute places on "miscellaneous tools".

There is a more compelling reason, however, why "mower" is not limited to the thing called a mower today, or even the thing called a mower in 1935. A statutory word of description does not designate a particular item (e.g., "a Massey-Ferguson Mower, Model GY-2589, manufactured in 1935, serial number 3875808") but a class of things that share some important feature. Which feature is important depends on the function of the designation and how it will be interpreted by the audience to whom the word is addressed. Cf. Saul Kripke, Wittgenstein on Rules and Private Language 19, 28, 98-109 (1982). If someone at a dinner party says: "Pull up a chair to the table", he means a table chair and not an overstuffed easy chair, even though both are called chairs. The word "chair" in an exemption statute, however, might include easy chairs but not Chippendale chairs--because the function of the statute is to leave the person a place to sit rather than to protect an antique valued (and valuable) for its beauty and age rather than its comfort. (There is a standing injunction not to sit on Chippendale chairs because that might destroy their value.) And if a change in language or function should cause a new name to be applied to a place to sit--say, if reclining chairs with stereo speakers built in should come to be called "stereoloungers"--it would be necessary to examine the function of the denotation yet again rather than say that a "stereolounger" is not a "chair" and that is that.

When asked at oral argument whether a mower with a built-in stereo cassette deck would still be a "mower", the Bank's lawyer answered yes, because it would still cut the hay. Yet it would have a second function, entertainment, just as the haybine has a second function, crushing the hay. The Bank's counsel balked at this extension because the crushing function makes the haybine more valuable as a farm implement and thus enlarges the shelter provided by the statutory exemption. Erickson's haybine is worth $1,500, considerably more than a mower. (Erickson also actually owns an old mower, valued at $25.) Yet the tape deck, too, would increase the market value of the mower.

There cannot be an "equal value" principle in Sec. 815.18(6). The "mower" has changed through time. When brought to market in the mid-nineteenth century, the mower was a simple, horse-drawn successor to the reaper. See Michael Partridge, Farm Tools Through the Ages 145-46 (1973). When in 1935 Wisconsin first created an exemption for a mower, many implements called "mowers" were horse drawn. Most mowers designed to be pulled by tractors drew power for the blades from the friction of wheel against ground. See Harris P. Smith & Lambert H. Wilkes, Farm Machinery and Equipment 286-87 (6th ed. 1976). The tractor-mounted mower, which drew power direct from the drive shaft of the tractor, was not introduced until 1930. After 1935 mowers grew in size, complexity, and efficiency. In 1952 the pitman drive for the blades was replaced by pitmanless cams, which reduced vibration and increased operating speed. Id. at 289. Later machines, still called "mowers", grew larger and more sophisticated; some had hydraulic lifts so that they could be maneuvered more accurately. Id. at 294-96. The "mower" that could be found on a farm in 1975 probably had no more parts in common with a horse-drawn 1935-vintage mower than a 1975 haybine had in common with a 1975 mower. The Bank does not deny that a mower made in 1975 would qualify as a "mower", which dooms the argument that an increase in value eliminates the exemption.

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