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74 Mo. 309

Greeley v. Reading

Supreme Court of Missouri

Decided October 15, 1881

Supreme Court of Missouri · decided 1881-10-15

<p>Possession of Debtor’s Property by Creditor: void mortgage. If a creditor in good faith takes possession of a stock of goods belonging to his debtor, under an agreement with the latter that he is to hold possession until his debt is paid, his title will be good as against a subsequent attachment-by another creditor; and the fact that he has taken a mortgage on the same goods, which is for any reason void as against the attachment, will not impair the rights acquired by possession.</p>

Key passage — most relied on by later courts

““If McCune (the mortgagee), in good faith, took actual possession of the stock of goods in question for the purpose of securing the payment of a debt justly due to him from Reading (the mortgageor), and continued to-hold possession of the same, up to the time of the levy of the attachment, it is wholly immaterial that the mortgage was improperly recorded, or that it contained stipulations which rendered it void except as between the-parties. This was expressly decided in Nash v. Norment ( 5 Mo. App. 545 ).””

quoted by 1 later decision, including Dobyns v. Meyer

Relies on Weber v. Armstrong

Good law ✅— No negative treatment on recordhow we know

Reversed · Decided 1881-10-15

How this case has been cited

Cited by 24 later decisions — most recently June 1919

2 federal appellate · 22 state decisions

1101881189019001910decided

Later decisions citing this case, by decade. The current decade is in progress, and our corpus holds fewer opinions from the most recent years, so the latest bars are undercounted — not a real decline.

View the full empirical analysis of this case →

Hough, J.

¶1On the 30th day of November, 1877, the plaintiffs attached a certain stock of groceries as the property of the defendant Reading, and the appellant McCune interpleaded for the same, under the statute.

¶2It appears from the record that on the 15th day of November, 1877, Reading executed to McCune a mortgage on said stock of groceries to secure the payment to said McOune of a note for $400. On the 16th day of November, 1877, this mortgage was acknowledged and filed for record, in Pike county, where the stock of groceries were situated, but was never recorded, as required by section 2503 of the Revised Statutes, in the county of Lewis, where the mortgageor resided. By the terms of the mortgage the mortgageor was to remain in possession and continue to sell in the usual course of business. The mortgage, therefore, would have been void, as a matter of law, as to creditors and purchasers, prior and subsequent, even if it had been properly recorded. Weber v. Armstrong, 70 Mo. 217, and cases there cited. . The testimony tended to show, however, that on the 16th day of November, 1877, *310McCune took actual possession of the store, and conducted the business under an agreement with Reading that he should take and hold possession until his debt was paid— and that he was so in possession when the attachment was levied. The court held that on this state of facts, McCune, the interpleader, could not recover. If McCune, in good faith, took actual possession of the stock of goods in question, for the purpose of securing the payment of a debt justly due to him from Reading, and continued to hold possession of the same up to the time of the levy of the attachment, it is wholly immaterial that the mortgage was ■ improperly recorded, or that it contained stipulations which rendered it void except as between the parties. This was expressly decided in Nash v. Norment, 5 Mo. App. Rep. 545. Vide also Jones on Chattel Mortgages, § 178. It should have been left to the jury to say whether these facts existed, and they should have been instructed that if such facts did exist, the interpleader was entitled to recover. The judgment will be reversed and the the cause remanded.'

The other judges concur.

¶3Motion for rehearing overruled.

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