77 Iowa 699 | Iowa | 1889
I. The plaintiffs in this action seek to foreclose two chattel mortgages, executed by defendant Walter Stickney, to indemnify plaintiffs against their liability as sureties for him. The mortgages are upon the same property, viz., live-stock, grain and hay on certain specified farms in Benton county, owned by the mortgagor. The mortgagor subsequently executed to plaintiffs another chattel mortgage upon the same property, to secure an indebtedness arising for money loaned, the amount being ascertained by an accounting after-wards had. Prior to the execution of these mortgages, Snock had brought suit- against Walter Stickney, and seized, upon an attachment issued in the case, a part of the live-stock, —thirteen three-year old steers. Judgment in this case was entered after the mortgages above mentioned' had been executed. It has been assigned to plaintiffs’ mortgagor. The mortgagor being insolvent, plaintiffs took possession of the propérty under their mortgages, and caused it to be advertised for sale. Defendant Lauderbaugh, in his answer, alleges that the several mortgages of plaintiffs were executed for the purpose of hindering and delaying himself and other creditors of Walter Stickney; that the indebtedness secured by the mortgages has been paid by the proceeds of sales of mortgaged property; that he brought suit on certain promissory notes executed by Walter, and recovered judgment thereon. An attachment was issued in the action after the plaintiffs’ mortgages were executed and levied upon the property described in the mortgages, and plaintiffs were at the same time garnished. On the same day, but after the levy of the attachment, Walter executed to the defendant a chattel mortgage upon the property attached. Defendant’s answer is made a cross-bill, and he prays for a foreclosure and judgment which shall be prior to the claims of all other parties. It appears from the pleadings that See, a tenant of Walter, claims an interest' in the property covered by the mortgages as a part owner. This interest is admitted by plaintiffs, and is denied by defendant Lauderbaugh. Two
II. Defendant Lauderbaugh insists tbat plaintiffs’ mortgages should not be enforced, for tbe reason that they were given to defraud Walter Stickney’s creditors. Tbe evidence clearly shows tbat the first two were given to secure plaintiffs, who became sureties for Walter for bona-fide debts. Tbe third mortgage was executed for a sum greater than was really due,- for. tbe reason tbat tbe parties bad made no settlement of tbe particular transactions out of which tbe indebtedness arose. We think that tbe district court’s conclusions as to tbe good faith of tbe mortgages and tbe amount due thereon are correct.
V. Counsel insist tbat tbe levy of tbe attachment in tbe Snock case did not bind tbe property, for the reason tbat it was all owned by Walter, and tbe sheriff
Affirmed.