Barron v. Robinson

Citations

• 67 Wash. 656
• 122 P. 343
• 1912 Wash. LEXIS 1227

Syllabus

<p>Bills and Notes — Payment — Contracts — For Security — Construction — Accepting Mortgage. Where an agreement between the makers and the payee of a note for $3,500, provided that out of $11,500 to be received from the sale of a steamer (upon which the payee held a chattel mortgage for $10,000) the payee should pay certain claims, applying the balance on his mortgage, and that the payee was entitled to hold the $3,500 until he had received his full claim (the makers acknowledging their liability thereon, less an agreed credit, to the amount of the payee’s loss in the transaction, if any, up to the amount of said note less the credit, upon the, sale of the steamer to the payee of the note, who received but $1,000 and took a chattel mortgage for $10,500 for the balance, upon which the purchaser of the steamer defaulted) the $3,500 was not paid by the transaction but was held as security for the payee’s losses; since the payee did not accept the mortgage as cash.</p> <p>Same. Such losses of the payee included money paid for attorneys’ and court fees in resisting claims upon the advice of counsel and insurance on the’steamer stipulated for in the mortgage.</p>