May v. McGaughey
| Decision Date | 16 March 1895 |
| Parties | MAY v. McGAUGHEY. |
| Court | Arkansas Supreme Court |
Appeal from circuit court, Jefferson county; John M. Elliott, Judge.
The property of C. M. Neel was attached by certain of his creditors. A. H. May, as surviving partner of the firm of Richardson & May, intervened, as did also H. C. McGaughey and others, claiming the property, — the former, as consignee of the property, and the latter, under a landlord's lien, for rent. From a decree in favor of H. C. McGaughey and others, A. H. May appeals. Reversed.
The facts in this case are as follows: One Wyatt was a tenant of the appellees H. C. McGaughey et al. during the year 1886, and they held his note for the sum of $810, for rent. Wyatt raised a crop on land of appellees, and, in order to obtain supplies for his use during the year, he mortgaged his crop to C. M. Neel, When the crop was matured, Wyatt gathered 17 bales of cotton, and delivered them to Neel, in part payment of debt to him. Neel knew that the rent had not been paid, and, in order to arrange that matter, he had a talk with Wyatt and McGaughey. H. C. McGaughey, who seems to have acted for himself and the other appellees, agreed with Neel that if he would pay $300 of the rent he would wait with him about two weeks for the remainder. Neel paid McGaughey the $300, and gave him his acceptance for $510, due the 15th of November, 1886. At the time this transaction was had the cotton was already in the possession of Neel. After this, on November 5, 1886, Neel delivered the cotton to the St. Louis, Arkansas & Texas Railway Company, to be transported to Richardson & May, at New Orleans, La. He received a bill of lading, in which he was named as consignor, and Richardson & May as consignees. He attached this bill of lading to a draft on Richardson & May, the consignees, for an amount equal to the value of the cotton, and forwarded the same for collection. The bill of lading was received and the draft paid by Richardson & May on the 8th day of November, 1886, while the cotton was yet in the hands of the railway company, awaiting transportation to them, and without any notice on their part of the landlord's lien. Neel failed in business about the 14th of November, 1886, and this cotton was attached by certain of his creditors as his property. Both the appellant and the appellees intervened. The appellant, as surviving partner of the firm of Richardson & May, claimed the right to hold the cotton for the payment of the amount advanced Neel on the bill of lading therefor. The appellees asserted that they had a lien on the cotton for the portion of the rent not paid. The decision of the chancellor was in favor of the appellees.
Rose, Hemingway & Rose and Austin & Taylor, for appellant. J. M. & J. G. Taylor, for appellee.
RIDDICK, J. (after stating the facts).
The only question before us is whether the appellees have, as against Richardson & May, the consignees, a lien on the cotton for their rent. To determine this question, we need only look to the evidence to see whether the appellees consented that Neel might ship the cotton. If so, they have no lien against any one purchasing the cotton from Neel, or advancing money upon it as a security, in good faith, and without notice of the landlord's lien. Puckett v. Read, 31 Ark. 131; Bledsoe v. Mitchell, 52 Ark. 158, 12 S. W. 390; 1 Jones, Liens, § 579. On this point there seems to us to be little, if any, conflict in the testimony. Three persons were present at the time McGaughey agreed with Neel to wait two weeks for the payment of the remainder of the rent. Of these three, Wyatt and Neel, though they do not testify that any express authority was given Neel to ship the cotton, yet both, in effect, say that the object they had in view in making the arrangement with McGaughey was to enable Neel to ship the cotton, and that it was understood by all parties that Neel would ship the cotton. McGaughey, in his testimony, almost admits this. After saying that Wyatt informed him that h...
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