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8 Cal. 554

Vance v. Boynton

California Supreme Court

Decided July 1, 1857

California Supreme Court · decided 1857-07-01

<p>Appeal'from the District Court of the Seventh Judicial District, County of Solano.</p> <p>This was an action to recover the value of five-hundred sacks of barley, alleged to belong to the plaintiff, and converted to his own use by the defendant. The facts were substantially these: One Haggett grew this, with other barley, upon his farm, and sold the same to plaintiff on, the twenty-fith of August, 1856. The sacks were marked “ V.," were counted, separated from other sacks of barley, and placed in a position by themselves in Haggett’s corrall, which was used by H. as a storehouse for his grain. The plaintiff at the same time employed one Chase to take care of the grain for five dollars per month. Chase was about the corral and looked after the barley for some two to four weeks, when he left and went to work at another place some eight or ten miles distant. On the fifteenth or sixteenth of October, 1856, Haggett delivered at Wing’s storehouse five hundred and ninety-five sacks of barley, including the five hundred sacks sold plaintiff. Haggett took a warehouse-receipt for the entire lot of five hundred and ninety-five sacks, and. some time afterwards sold the barley to defendant, who then took a warehouse-receipt in his own name. The barley remained in the warehouse until the middle of February, 1857, when it was removed by defendant. Chase, the agent of plaintiff, saw Haggett when hauling away the last load of the barley, and about one week afterwards, also saw the sacks marked “ V.” at the warehouse. A verdict and judgment were had for the plaintiff, and defendant appealed.</p> <p>On the trial, the defendant’s counsel asked the Court to charge the jury, “If there was a sale from Haggett to Yance, then the sale was fraudulent and void as to defendant as a purchaser, unless the delivery was immediate upon the sale and followed by an actual and continued change of possession.”</p> <p>This the Court refused, and. defendant excepted. The Court then, of its own motion, instructed the jury as follows, under the exception of defendant:</p> <p>“That the first thing the jury were to ascertain and determine was the fact, whether or not Haggett sold and delivered the barley to Yance. That if for a valuable consideration the grain was sold to Yance, the sacks separated, counted, and piled up by themselves, there was a sufficient delivery as between Haggett" atid Yance to pass the title to Yance. That upon the question of delivery as between Yance and the creditors or subsequent purchasers of Haggett, and also as to there being a continued change of possession, these were matters of fact for them to pass upon, since they were to determine the fraudulent intent. If they found there was not an actual delivery and continued change, the sale was made by the law itself fraudulent and void as to subsequent purchasers in good faith; that the question was rather what was the motive of Yance than what Avas the motive of his vendor. If Yance bought in good faith and had no knowledge of the purpose of the vendor, the sale Avas good, though Haggett might have intended to defraud subsequent purchasers.”</p> <p>The Court further instructed the jury, under the exception of defendant’s counsel:</p> <p>“ That the question whether or not the barley was delivered by Haggett to Yance, was a question for the jury to decide. ¡But if there Avas such a delivery by Haggett to Yance, and such a taking of the possession by Vance a.s a man would ordinarily take of such property sold to him, then the title to the grain passed to .Vance; and if purchased by Vance in good , faith, then he could not be deprived of his right to it by a subsequent taking of it by Haggett unless he consented or connived at such taking. That the question was not whether Haggett acted in bad faith, but whether the sale from Haggett to Vance '•was to be considered fraudulent and void as to Boynton as a subsequent purchaser, because of any fraudulent intent on the part of Vance—that if Vance became the owner of the grain by purchase from Haggett, and continued in possession until it was taken away by Haggett against his consent, he could not bo deprived of his right to the grain by the subsequent sale and delivery of it by Hagg'ett to Boynton.”</p>

Cited by 2 later decisions — most recently March 1986

1 federal appellate · 1 state decisions

Good law ✅— No negative treatment on recordhow we know

Decided 1857-07-01

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Burnett, T., delivered the opinion of the Court—Terry, C. J., concurring.

¶1This is a case between two purchasers of the same property, from the same fraudulent vendor,- and the only question regards the person who must sustain the loss. If both purchasers were equally in fault, or equally innocent, then the first purchaser was entitled to the property. It is a case arising under our Statute of Frauds. Com. L., 199.

¶2The first section of the act relates solely to fraudulent conveyances of, or charges upon, lands, or the rents and profits thereof, made or created with intent to defraud purchasers, prior or subsequent The twentieth section relates to conveyances, and assignments of any estate in lands, or goods, with intent to defraud creditors or others, of their lawful suits, damages, forfeitures, debts, or demands. The first section only relates to purchasers, and the twentieth to creditors and others, sustaining substantially the same relation to the vendor, and not to purchasers.

¶3From the provisions of these sections, a sale of Zanámade with intent to defraud purchasers or creditors, would be void. But there is nothing- in these 'provisions that would make a sale of personal property, with intent to defraud subsequent purchasers, void as to them.

¶4We must then look to the fifteenth section, as the only provision in the act applicable to this case. By that section, unless the sale be accompanied by an immediate delivery, and be followed by an actual and continued change of possession,” it will be void, as against subsequent purchasers in good faith.

¶5If; then, a sale of chattels be made with the intent, both on the part of the vendor and vendee, to defraud subsequent bona fide purchasers, the same would not be void under the statute, as against such purchaser, unless the sale was not accompanied with the delivery, and continued change of possession required by the fifteenth section. Where the sale is accompanied with such delivery and change of possession, it is difficult to see how a subsequent purchaser could be injured without carelessness or fault on his part. When the delivery and change of possession exist, the subsequent purchaser has notice, and if he purchase of the original vendor, then out of possession, there is nothing in the statute to give him relief.

¶6*561It would then seem clear, that the question of intention can have nothing to do with sales made void by the fifteenth section. That section makes certain facts conclusive evidence of fraud. These facts are not made up of intention, in whole or in part. The intention of the vendor and vendee, or either of them, constitute no part of this “ conclusive evidence of fraud.” The simple fact, and that fact alone, that the vendor remains in possession of the thing sold, makes the sale void.

¶7In this case, there was no question of intention for the jury to determine. A question of intention, in the nature of the case, must be a question of fact, and if so, must be determined, in all cases, by the jury. But this question of intention arises under sections first and twentieth, but not under section fifteen.

¶8The question of delivery and change of possession, under the fifteenth section, is a mixed question of law and fact. What are the circumstances existing in the particular case, is a question of fact for the jury. But, conceding their existence, whether they constitute the immediate delivery, and the actual and continued change of possession required by the statute, is solely a question of law for the Court. When the _ facts are conceded, or clearly proved, there is nothing for the jury to determine.

¶9In this case, there is no conflict of testimony, and the main substantial facts are clearly established.

¶10W.e have already held, that a vendor having possession of the property as clerk, or as warehouseman of the vendee, rendered the sale fraudulent. 4 Cal. Rep., 289 3 Stewart v. Scannell, July T., 1857.

¶11The mere change of the capacity in which the vendor acts while in possession of the goods, will not save the sale from the provisions of the statute.

¶12The object of the fifteenth section of the act was to adopt a plain, simple, and conclusive test. If the parties be held strictly to change the possession of the property sold, it is the greatest possible check upon fraud. The fraudulent vendor cannot enjoy the benefit of his fraud, if the statute be rigidly enforced. There can exist no motive for fraud, when nothing can be gained by it.

¶13The possession of property is necessary to its beneficial use; and when the fraudulent vendor must deprive himself of its possession and use, to comply with the statute, there can be no adequate motive for the sale.

¶14In this case, the apparent ownership of the property was left in¡i Haggett by the act of the plaintiff. The barley was left where it would have been had it not been sold. The mere change from one part of the corral to another, did not destroy this apparent ownership, so long as the corral itself remained in the- possession of Haggett. ETo one, not acquainted with the trade, would have been able to know the real owner. The agent *562of plaintiff looked after the property at.intervals, but never changed its position, and suffered Haggett to remove and store it as his own.

¶15This case differs very much from some former cases, where the property was found, and left in the possession of a warehouseman. The delivery of possession was sufficient, and the change of possession would have been good, if the property had been on storage at the time of sale. In such case, the warehouseman becomes the agent of the purchaser, and the property is, in no sense, in the possession of the vendor.

¶16We think, in this case, the change of possession was not actual and continued. The rule is well laid down in Chitty on Contracts, seventh Am. Ed., 414:

It seems that the change of possession necessary to rebut the inference of an intention to defraud creditors, must be substantial, bona fide, and exclusive ; and consequently, that the sale or assignment will be considered fraudulent and void, and the assignor’s possession colorable, if the goods be left upon the premises of the assignor, and in his apparent disposal or order, although the vendee or his servant enter upon the premises, and also be in possession of the goods.”

¶17The instructions of the Court below, in submitting the question of intention to the jury, were erroneous.

¶18Judgment reversed, new trial granted, and cause remanded.

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