Story Case

James Davison owned a saw-mill, in which there was considerable machinery, including a mill chain for drawing logs up to the mill. The chain was thrown over a sprocket, and could be readily hooked, or unhooked at pleasure. Davison sold the saw-mill to Walter Frey, executing a deed to him in general form. Thereafter, Davison picked up the chain from the sawmill and carried it away. Frey, thereupon, sued Davison for conversion of his property. Davison maintained that the chain was personal property, and not covered by the deed. Is Davison guilty of conversion?

Ruling Court Case. Byrne Vs. Werner, Volume 138 Michigan Reporter, Page 1

Byrne conveyed to Thurber by a warranty deed, lots 4 and 5 of block 17 in the city of Marquette. At that time, there was situated upon these lots a partially completed building in the process of erection. There was also situated on the land conveyed, and on an adjoining lot, cut stone and structural iron, which was intended to be used in the completion of the building in question. Each piece of the structural iron was of the dimensions provided in the plan of the building, and selected for the place where it was to go. At that time, it was intended that the building would be completed, but the plan was abandoned by Werner, to whom Thurber later transferred the property. After the conveyance from Byrne to Thurber, Byrne executed a bill of sale to his son, purporting to sell to him this stone and structural iron in question. He brings this action against Werner who refuses to give it up.

Werner claims that the stone and iron in question belonged with the uncompleted building, and passed with it in the conveyance from Byrne to Thurber, and from Thurber to him.

Mr. Justice Carpenter said: "Upon the land conveyed to Thurber was an incomplete building in the process of erection; situated upon that land and upon the adjoining land was building material designed to be used for the completion of the building. It was surely intended that the incomplete building should be transferred to Thurber. It was surely intended that the building would be completed with the building material at hand; and I think it therefore equally certain that it was intended that such material should pass with the conveyance. I think, therefore, that the building material became the property of Thurber, as it was part of the real estate." Judgment was, accordingly, given for Werner.

Ruling Law. Story Case Answer

A fixture is property which formerly was personalty, but has become real property, because of the nature of its annexation to a freehold. The term includes that property which has changed the nature of its identity, losing its character as a chattel, and become land. If the object has become annexed to the land in such a manner that its removal would destroy its usefulness, or that of the land, or injure the land, it is said to be part of the land, becoming a fixture thereon. Also, if it is apparent from the use of the object that it has been put upon the land as a permanent improvement, and for the better use of the property as a unit, the object is said to be a fixture, and becomes a part of the land. If chattels are annexed to the land, but not sufficiently to become a part thereof under the two tests explained, they are not fixtures, and are properly designated as domestic chattels, trade chattels, agricultural chattels, etc.

In the Story Case, it was evident that the chain was a part of the real estate under the test last explained. It was not physically attached to the land so that its removal would destroy either itself or injure the land (the mill). But the nature of its use indicated an intention that it should be used as a part of the mill, and, therefore, it passed in the sale under the deed.