United Contractors, Inc. v. United Construction Corp.

187 So. 2d 695 (Fla. Dist. Ct. App. 1966) · District Court of Appeal of Florida, Second District · June 10, 1966 · No. No. 5605

Summary

The Florida Second District Court of Appeal reviewed a foreclosure decree involving a consolidated promissory note and chattel mortgage covering road-building equipment, including a Northwest 95 dragline. The court held that the mortgage and foreclosure could not impair United Contractors' rights in the dragline because of its open possession, the recorded bill of sale, Industrial Credit Company's acceptance of Contractors' payments, and the lack of Contractors' assent to the refinancing arrangement. The decree was affirmed in part and reversed in part, with directions to reestablish the parties' rights and obligations concerning the dragline.

Holdings

  1. The chancellor erred by including the NW #95 dragline in Industrial's mortgage foreclosure as against Contractors' rights.
  2. The consolidation of the dragline debt with Construction's unrelated debts constituted a modification that could not impair Contractors' rights without mutual assent.

Questions Presented

  1. Whether Industrial's consolidated promissory note and chattel mortgage could be enforced against the NW #95 dragline as against Contractors and Acme.
  2. Whether Industrial's acceptance of Contractors' payments and its knowledge or constructive notice of Contractors' open possession and claimed interest prevented Industrial from asserting the consolidated mortgage against the dragline.
  3. Whether Construction and Industrial could modify or impair Contractors' contractual and property rights in the dragline without Contractors' assent.

Disposition

reversed_and_remanded

Cases Cited (17)

  • Tatum Bros. Real Estate & Investment Co. v. Watson, 92 Fla. 278, 109 So. 623 (1926)(followed)
  • Fla. Stat. § 695.01(applied)
  • Sapp v. Warner, 105 Fla. 245, 141 So. 124 (1932), reaffirmed on rehearing, 143 So. 648(followed)
  • Tri-County Produce Distributors, Inc. v. Northeast Production Credit Ass'n, 160 So. 2d 46 (Fla. Dist. Ct. App. 1963)(followed)
  • Tolar v. Myer, 96 So. 2d 554 (Fla. Dist. Ct. App. 1957)(followed)
  • Daniel v. May, 143 So. 2d 536 (Fla. Dist. Ct. App. 1962)(followed)
  • Davis v. Brewer, 135 Fla. 752, 186 So. 207 (1939)(followed)
  • Maule Industries, Inc. v. Sheffield Steel Products, Inc., 105 So. 2d 798 (Fla. Dist. Ct. App. 1958)(followed)
  • Hagan v. Sabal Palms, Inc., 186 So. 2d 302 (Fla. Dist. Ct. App. 1966)(followed)
  • Rinehart v. Phelps, 150 Fla. 382, 7 So. 2d 783 (1942)(followed)

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