Valley Nat. Bank of Des Moines v. H. B. Claflin Co.

• Decision Date: 20 May 1899
• Citation: 79 N.W. 279,108 Iowa 504
• Parties: VALLEY NAT. BANK OF DES MOINES v. H. B. CLAFLIN CO. ET AL.
• Court: Iowa Supreme Court

108 Iowa 504

79 N.W. 279

VALLEY NAT. BANK OF DES MOINES

v.H. B. CLAFLIN CO. ET AL.

Supreme Court of Iowa.

May 20, 1899.

Appeal from district court, Polk county; Thomas F. Stevenson, Judge.

Action in equity to recover the amount alleged to be due on certain promissory notes made by the defendants Israel Bros. and W. C. Israel, and to foreclose a chattel mortgage on two stocks of merchandise, with furniture, fixtures, and utensils used in connection therewith, given to secure the payment of the notes. The petition also asked the appointment of a receiver. The H. B. Claflin Company and other creditors of the makers of the notes, were made parties defendant, and a receiver was appointed. From the order appointing a receiver, the H. B. Claflin Company appeals. Affirmed.C. C. & C. L. Nourse, for appellant.

Ayres, Woodin & Ayres, for appellee.

ROBINSON, C. J.

We are required to determine whether the plaintiff was entitled to the appointment of a receiver. The facts material to an understanding of that question are as follows: During a part of the year 1897, Israel Bros. carried on business at two places in the city of Des Moines. At one, on Locust street, articles of clothing were manufactured; and at the other, on Walnut street, dry goods, wearing apparel, and other articles were retailed. On the 29th day of October, 1897, the defendant the Clinton Woolen Manufacturing Company recovered against Israel Bros. a judgment for the sum of $2,139.63, and on the same day caused an execution to be issued and levied upon the property of Israel Bros. at the two places of business mentioned; and possession of the property thus levied upon was taken by the sheriff. After that was done, but on the same day, Israel Bros. executed to the plaintiff a mortgage upon the property held by the sheriff. A mortgage on the same property was subsequently executed to the H. B. Claflin Company, and an attachment thereon was levied in favor of the defendant the Iowa National Bank. There was also a landlord's lien on each stock for rent, a part of which was due. On the 1st day of November, 1897, the plaintiff commenced its action. The petition alleged, in effect, that the Locust street stock consisted of clothing, and a large quantity of material designed to be manufactured into clothing; that it was then the proper season for selling the goods of both stocks, and that if manufacturing was stopped, and the places of business were closed for the purpose of foreclosure, great damage would result; that the plaintiff's lien on the property was larger than that of any other creditor; and that it was doubtful if the goods in both stocks would satisfy the claim of the plaintiff, which amounts to about $20,000. It asked judgment for the amount due, for the foreclosure of its mortgage, and that a receiver of the property be appointed, with power to continue the manufacture of clothing, and the selling at retail of goods of both stocks. The H. B. Claflin...