Standard Computing Scale Co. v. Adam
| Decision Date | 05 March 1923 |
| Docket Number | Original.,6176,230 |
| Citation | 287 F. 347 |
| Parties | STANDARD COMPUTING SCALE CO. v. ADAM (two cases). In re ASEL. |
| Court | U.S. Court of Appeals — Eighth Circuit |
J. M Dodson, of Kansas City, Mo., for appellant and petitioner.
James B. Nourse, of Kansas City, Mo., for appellee and respondent.
Before STONE, Circuit Judge, and BOOTH and JOHNSON, District Judges.
This is a petition to revise and an appeal from an order of the trial court, for the Western district of Missouri, affirming a ruling of a referee in bankruptcy denying the lien of chattel mortgages on two computing scales belonging to the bankrupt and denying delivery of such scales to the mortgagee. The issues involved in this review are such that the petition to revise will be dismissed and the appeal will be considered upon its merits.
The ruling of the referee was that the chattel mortgages were ineffective against those giving credit to the mortgagor during the period of time between the making of and the recording of the mortgages.
The applicable law is that the Missouri statute (section 2256 R.S. Mo. 1919) provides that no chattel mortgage shall be valid as to third persons unless possession of the chattel be retained by the mortgagee or the mortgage be recorded in the county where the mortgagor resides. The Supreme Court of Missouri has strictly construed and rigidly enforced this statute, even where the third party affected had actual knowledge of the existence of the mortgage at the time he dealt with the mortgagor. The only relaxation of this position by that court is found in the statement, in opinions, that a reasonable time, under the existing circumstances, is allowed for recordation. What constitutes such reasonable time depends upon the facts of each case.
As to the above legal propositions see Wilson v. Milligan, 75 Mo. 41, Bevans v. Bolton, 31 Mo. 437, and Bryson v. Penix, 18 Mo. 13. This protection, as to credits intervening the making and recording, has been steadily maintained by the Missouri courts. Landis v McDonald, 88 Mo.App. 335. Also see In re Bennett, 264 F. 533 (D.C.W.D. Mo.); Becker Co. v. Gill, 206 F. 36, 124 C.C.A. 170 (this court); McElvain v. Hardesty, 169 F. 31, 94 C.C.A. 399 (this court).
The facts to which the above law is here to be applied are as follows: These scales were purchased and the mortgages thereon executed May 10, 1921. The mortgages were recorded June 16, 1921. In the intervening time, credits, yet unpaid and presented in this bankruptcy proceeding, were extended. No reason...
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