Canadian Bank of Commerce v. Baum

Citations

• 187 Pa. 48
• 40 A. 975
• 1898 Pa. LEXIS 767

Syllabus

<p>Bailment — Sale—Title—Fraud.</p> <p>The plaintiff holding the legal title and constructive possession of goods, but in equity being only the pledgee for security and repayment of advances made to K., the real owner, delivered the evidences of title to K., taking in return a storage receipt, with liberty to K. to sell, accounting aud paying over the proceeds to plaintiff. Defendants sent K. cheeks to be used to meet their notes which had been given previously as payment in advance for certain purchases. K. used the checks for other purposes, and defendants were obliged to pay the notes themselves. Subsequently, in anticipation of fraudulent failure, but without any knowledge or prior communication to defendants, K. sent the latter an invoice and bill of sale of the goods held under the storage receipt, and a few days later the goods were delivered to defendants. Held, that the defendants took no title to the goods as against the plaintiff.</p>