Bank of California v. Danamiller

Citations

• 125 Wash. 255
• 215 P. 321
• 36 A.L.R. 753
• 1923 Wash. LEXIS 970

Syllabus

<p>Sales (179-1)—Conditional Sales—Assignment of Contract— Effect—On Title to Property. The vendor’s assignment of -a conditional sales contract of an auto truck for the purpose of security, does not make the assignee a purchaser of either the contract or of the property, but passes only the right to collect the money due and apply it to the payment of the debt secured.</p> <p>Same (179-1)—Conditional Sales—Assignment of Contract— For Security—Effect—Innocent Purchasers—Title. The vendor’s assignment of a conditional sales contract of a truck, for the purposes of security, cannot be upheld as a pledge or chattel mortgage of the vendor’s reserved title or interest as against innocent purchasers from the vendor; since there can be no valid pledge without delivery of the thing pledged, and no valid mortgage creating a secret lien without a due writing and notice, actual or constructive.</p> <p>Estoppel (35-1)—-Equitable Estoppel—Loss by Innocent Party —Taking Secret Security. A bank taking the vendor’s assignment of a conditional sales contract for the purposes of security, without any notice of record of its interest, when it might have'secured itself by a chattel mortgage of the vendor’s reserved title, giving the world notice of its claim, must suffer the loss sustained by innocent purchasers, upon the vendor’s fraudulent retaking possession and disposing of the property without notice to the bank.</p>