WM. S. Tyler Co. v. O'Ferrall

Sloan, J., delivered the opinion of the Court. By chattel mortgage on April 23rd, 1926, Ralph Milburn, Inc., of Baltimore, conveyed to the appellant certain personal property to secure the sum of $708.75, which was signed, “Ralph Milburn, Inc., by Ralph Milburn, Pres., A. Gower Lawrence, Sec.-Treas.” and was duly acknowledged May 4th, 1926, recorded May 5th, 1926, but did not contain a seal. Subsequently, and before any part of the mortgage debt was paid, Ralph. Milburn, Inc., went into, the hands of receivers, who are the appellees.

The appellant, filed a petition in the Circuit Court ISTo. 2 of Baltimore City, praying the court to direct the receivers to deliver the mortgaged property to the petitioner, or to pay it the mortgage debt, or to sell the mortgaged property and, after the payment of costs and expenses, to pay the petitioner’s claim out of the proceeds of sale. The receivers answered, admitting the facts, but alleged that the mortgage was not valid and was not a lien upon the mortgaged property because it did not contain the seal of Ralph Milburn, Inc., as required by article 21 of the Code. Judge Stanton passed a decree dismissing the petition, and directed that the mortgage be given priority over unsecured creditors at the time of its execution, but that it be distributed to pari passu with general creditors whose debts were contracted after its execution. Erom this decree an appeal was taken.

The sole question for us to decide is whether the seal was ³⁵⁵ essential to the validity of the mortgage. It has been decided by this Court that such mortgage is good as against prior unsecured creditors. Textor v. Orr, 86 Md. 392 ; Brown v. Alford & Co., 83 Md. 297 ; Goldsborough v. Tinsley, 138 Md. 419 . “Any bill of sale of personal property shall be sufficient in form if it contains the names of the parties, the consideration, a description of the property conveyed, and be signed and sealed by the vendor, and dated.” Article 21, section 45, of the Code. “A mortgage of personal property shall