Thomas v. Grote-Rankin Co.

• Decision Date: 06 September 1913
• Citation: 75 Wash. 280,134 P. 919
• Parties: THOMAS et al. v. GROTE-RANKIN CO.
• Court: Washington Supreme Court

134 P. 919

75 Wash. 280

THOMAS et al. v. GROTE-RANKIN CO.

Supreme Court of Washington

September 6, 1913

Department 2. Appeal from Superior Court, Spokane County; J. D. Hinkle Judge.

Action by C. P. Thomas and others against the Grote-Rankin Company. Judgment for plaintiffs, and defendant appeals. Affirmed.

Twitchell & Wentworth and Charles P. Lund, all of Spokane, for appellant.

Danson Williams & Danson, and George D. Lantz, all of Spokane, for respondents.

MAIN J.

The purpose of this action is to recover damages for the alleged conversion of certain hotel furniture. On January 11, 1909 the plaintiffs were the owners of the north 175 feet of lot 5, in block 13, of resurvey and addition to Spokane Falls (now Spokane), Wash., upon which tract of ground there had been erected a three-story brick building known as the Colonial Building. On the date above mentioned the plaintiffs leased the second and third floors of the building, hereafter referred to as the Colonial Hotel, to one Alex Clitsome, for the term of two years, at the monthly rental of $627, payable on the first day of each and every month. By the terms of the lease it was provided that the owners (plaintiffs) should have a lien upon all property theretofore and thereafter brought upon the premises for the purpose of securing the rent. On April 24, 1909, Clitsome assigned the lease to one Katherine Merrill, which assignment was approved by the plaintiffs. On July 6, 1909, Katherine Merrill assigned the lease to B. C. Wiltse and L. Mae Wiltse to which assignment the plaintiffs consented. On September 21, 1909, the Wiltses by conditional sale contract sold the property in the Colonial Hotel to one Fred W. Goddard. The Wiltses placed Goddard in possession of the premises. The lease, however, was not assigned to Goddard, and the plaintiffs at no time recognized him as their tenant. During the month of November, 1910, rent in the sum of $1,140 was due and unpaid. The plaintiffs, being aware of the conditional sale contract covering the furniture and the lease, took from Goddard a chattel mortgage in the sum of $1,140 upon the furniture and personal property in the Colonial Hotel. On June 2, 1911, rent being due and unpaid in the sum of $2,125.80, suit was commenced against the Wiltses and Goddard to foreclose the lien provided for in the lease. On June 5, 1911, the defendant learned of the pendency of that action, and caused its attorney to investigate the same. On June 10, 1911, at about 6 o'clock in the morning, the defendant sent to the Colonial Hotel a number of moving vans, and removed all of the furniture and personal property from the Colonial Hotel, against the protests of the plaintiffs and Goddard. On August 19, 1911, a decree was entered in the foreclosure action against the Wiltses and Goddard, and the sale of the furniture and hotel fixtures ordered. At this time, however, the defendant had sold a portion of the goods, and had so commingled the remainder with other goods that they could not be identified. During the spring of the year 1910, the Wiltses were operating what was known as the Holland Hotel, in Seattle. They had purchased a large amount of furniture from the Grote-Rankin Company upon credit, and to secure the payment of the same executed a chattel mortgage, and also at the same time, as security, assigned and delivered to the Grote-Rankin Company a copy of the conditional sale contract which had been given to Goddard, and indorsed over Goddard's notes. The Wiltses defaulted in the payments, both upon the furniture and in the rent for the Holland Hotel. Litigation followed which resulted in a settlement which took place between May 31, 1911, and June 2, 1911. By this settlement the Grote-Rankin Company returned to the Wiltses the notes covered by the chattel mortgage on the Holland Hotel furniture, and released the mortgage, but continued to hold the copy of the conditional sale contract given by the Wiltses to Goddard on the Colonial Hotel property in Spokane, and also the Goddard notes. It appears that as a part of the settlement it was orally agreed that the Grote-Rankin Company was to have the rights of the Wiltses to the furniture and property in the Colonial Hotel. The possession of the furniture was not delivered. The only possession taken by the Grote-Rankin Company was that stated. There is little, if any, dispute as to the facts in this case. What controversy there is relative thereto arises over the inferences drawn from the undisputed facts, rather than a dispute as to the facts themselves. The cause was tried to the court without a jury. Judgment was entered in favor of the plaintiff for the sum of $2,152.80, with interest thereon from the 19th day of August, 1911. The defendant appeals.

The questions which are determinative of this case are: First did the appellant have notice of the lien claimed by the respondents? Second, was the furniture in the Colonial Hotel at Spokane by the oral agreement sold to the appellant in payment of an antecedent debt? Third, if the transfer were made in payment of an antecedent debt, was the appellant a purchaser for value? Fourth, if the appellant...