Tregear v. Etiwanda Water Co.

Citations

• 76 Cal. 537
• 18 P. 658
• 1888 Cal. LEXIS 929

Syllabus

<p>Corporation—Stock—Personal Property.—Shares of stock in a corporation are personal property.</p> <p>Chattel Mortgage — Common Law—Validity between Parties.— Mortgages of personal property were valid between the parties at common law, and in many cases were held valid without change of possession in the absence of fraud, even against subsequent bonajide purchasers and creditors. Under our statutes, mortgages of personal property not included in the chattel mortgage act are void as against creditors and subsequent purchasers, if not accompanied by immediate delivery and actual and continued change of possession, but are nevertheless valid' between the parties, as at common law.</p> <p>Mortgage of Real and Personal Property—Sale under Foreclosure. — A mortgage is valid between the parties, though it includes both real and personal property, and the possession of the personal property is not delivered; and both the real and personal property may he sold' under decree of foreclosure, and transferred by the sheriff’s deed if no redemption is made.</p> <p>Corporation—Transfer of Stock Sold under Mortgage—Sheriff as Agent—Parties — Pleading.—In an action to compel a corporation to transfer stock sold under foreclosure of a mortgage thereon, the mortgagor is not a necessary party. He is to be treated as the vendor of plaintiff, who sold his stock through the sheriff as agent. If the sale was not valid in fact, it is matter of defense; and if it appears from the defense that the mortgagor is a proper party, he may be ordered brought in under section 389 of the Code of Civil Procedure. The fail- - ure to join him in the complaint is not ground of demurrer.</p>