Congdon v. G. M. H. Wagner & Sons

RICHARDS, J.

This action was commenced by plaintiff to recover damages for an alleged conversion of a crop of grapes of which the defendant had taken possession and harvested and marketed under a claim of right so to do by virtue of the provisions of a chattel.mortgage covering said personal property. The plaintiff recovered judgment for the damages which she sought by reason of such conversion. This appeal is upon the judgment-roll and the sole question thus presented is as to whether the findings support the conclusions of law and judgment of the trial court. The facts as disclosed by the findings are these: On August 15, 1923, and for some time prior thereto, two persons, whose names were D. Van Tol and J. Trainor, were the owners and tenants in common of a tract of land in Imperial County, containing approximately forty acres, and upon which or a portion thereof there was then growing a crop of grapes. Upon said date these owners of said land made, executed and delivered to the defendant in this action, a corporation, a chattel mortgage upon said growing crop of grapes as security for certain moneys advanced and to be advanced to said mortgagors and which were to be applied to the cultivation, irrigation, growing, harvesting and marketing of said grapes, the proceeds whereof were to be applied to the payment of said advancement. The mortgage by its terms

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provided that it should also cover future crops of grapes to be grown upon said land through a series of years, to and including the year 1925, and further provided that in the-event the indebtedness thus to be incurred was not repaid within a specified time the mortgagee would have a right to enter upon said premises and take possession of whatever of said crop was growing thereon and proceed to harvest the same,- applying the proceeds thereof to the payment of said indebtedness. Said crop mortgage was found by the trial court to have been duly executed and duly recorded in the office of the county recorder of Imperial County and was-in full force and effect from the date of its execution to and including a portion of the latter year. The trial court further found that prior to March 7, 1925, the owners of said property had caused the same and the title thereto to be registered under that certain initiative law known as the Torrens Land Title Law, or, perhaps more correctly, as-defined in the title thereof, as the “Land Title Law” and-which was adopted by the people at the general election on November 3, 1914, and which went into effect on December 19, 1914. (Stats. 1915, p. 1932.) The court further found, that the aforesaid crop mortgage had not been registered under said Land Title Law ánd that the same and the record thereof had not been made -to appear upon the certificates of title provided for under said law, but that the same was simply recorded in the record of chattel mortgages of the county of Imperial and so appeared upon the records of said county on March 7, 1925. The court further found that on March 7, 1925, the aforesaid owners of the land sold and transferred the same under and in accordance with the provisions of said Land Title Law to the plaintiff herein for a valuable consideration, and that at the time Of the sale.and transfer the plaintiff had no actual knowledge of the existencé of said chattel mortgage, but took the land by virtue of the sale in good faith and in the ordinary course of business; that at the time of the purchase of the land by the plaintiff a crop of grapes was growing thereon which became ripe- and ready for harvesting on or about July 1, 1925; that on said last-named date the former owners of the land were indebted to the defendant in a sum exceeding $7,000 and were in default in the payment thereof, and that thereupon the defendant entered upon the premises under the