20 S.D. 316 | S.D. | 1906
This is an appeal by the intervener from a directed verdict and judgment entered in favor of the plaintiff. The
The learned circuit court, in directing a verdict, instructed the jury as follows: “The court being of the opinion that the intervener, M. R. Baskerville, could not recover upon his'complaint in intervention in this case for the reason the mortgage upon threshing earnings is so'indefinite and uncertain as not to amount to a mortgage at all, the court therefore directs a verdict in favor of the plaintiff.” The question presented for the court’s decision is as to the sufficiency of description in the chattel mortgage so executed by French to the intervener, Baskerville.
The amount due from French to the plaintiff for his work and labor .was conceded. That Jones was indebted to French in the amount claimed for threshing was also conceded. The execution and recording of the chattel mortgage in the manner required by law was not questioned. The so-called chattel mortgage contract is in words and figures as follows, to-wit: “That the undersigned, * * * party of the first part, being justly and lawfully indebted to M. R. Baskerville, party of the second part, in the sum of fourteen hundred dollars principal and interest thereon, according to the condition of notes described as follows: * * * Now, therefore, for the purpose of better securing' said notes and any and all renewals of extensions of said notes, or any part thereof, and in addition to such security as has been heretofore given, the said party of the first part does hereby grant, bargain, sell, assign, transfer and set over unto the party of the second part, * * * all the right, title and interest of said party of the first part to all earnings and proceeds, whether in the form of money, notes, thresh orders, or accounts, to be earned
It is contended by the respondent, in support of the ruling of the court below in directing a verdict, that the instrument denominated a chattel mortgage is s,o indefinite and uncertain that parties are unable to determine therefrom what earnings it was intended to cover. The appellant, on the other hand, contends that the alleged' mortgage in controversy was fully authorized by the provisions of our Code, and that it was sufficiently definite and certain, and that under its provisions he was entitled to recover the _ amount of the monejr due from Jones, or.at least 60 per cent, of the same. We are inclined to take -the view that the appellant is right in his contention. It is undoubtedly true that under the provisions of our’ Code the owner of a threshing machine may mortgage the earnings-of the same which may he earned in the futuer and ,that such mortgagee may hold such earnings as against the laborers employed iir running such machine, providing the intention of the mortgagor to mortgage' all the earnings of the machine, including the wages of the employees, is 'dearly shown by the chattel mortgage, and the' description of the machine is sufficiently definite, arid the time and place within which the earnings are to accrue are sufficiently specific, to give subsequent purchasers or claimants notice that the same are so mortgaged. That such a mortgage may be made, or earnings subsequently accrued, does not seem to be seriously questioned' by the respondent, his contention being that the description of the-earnings to be assigned, and the locality of such earnings, are not
It is contended by the respondent that the method of ascertaining the 40 per cent, to be repaid to the mortgagor, or making the division, is indefinite and uncertain. This contention is clearly untenable. It is particularly specified that a division is to be made of all the earnings turned over, either in cash, thresh orders, notes, or accounts, pro rata, according to the amount having been paid; that is, 40 per cent, is to be paid over to the mortgagor in the same proportion of notes, orders and accounts that may accrue as those received. It is difficult to see how the mortgage contract could have been made more definite and certain in this regard. The machine itself which is to be run by the mortgagor, is particularly described by numbers, so that it can be easily identified. The territory in which the machine.is ±0 be operated, and the years in which the same is to be operated; are very fully and particularly described-No one, after examining the record, would fail to find therein a description which would enable him, aided by inquiries which the instrument itself suggests and directs, to identify the earnings intended to be mortgaged. The terms of the contract seem to fulfill the most exacting requirements of the rule which reciuires the intention of parties to be clearly and fully expressed before a court will enforce the contract. We can discover no reason why such a contract, if sufficiently clear and specific, should not be enforced by the courts. Such contracts enable parties of small means to secure threshing rigs ,and to pay for them out of their earnings. There is nothing in the terms of such contracts contrary to public policy, or to the best interests of agricultural communities, but they rather tend to encourage and develop such interest. After a careful exam-
The judgment of the circuit court is reversed.