Carpy v. Dowdell

Citations

• 115 Cal. 677
• 47 P. 695
• 1897 Cal. LEXIS 493

Syllabus

<p>Chattel Mortgages — Assignment after Maturity of Notes — Fore, closure—Defense against Assignee. —Where notes secured by chattel mortgages are assigned, after they become overdue, to one who knows the fact upon which a defense rests against the chattel mortgagee, the assignee stands in the shoes of such mortgagee, and, upon foreclosure of the chattel mortgages, is subject to the same defense which might have been made upon foreclosure by the mortgagee.</p> <p>Id.—Chattel Mortgage of Wine to Bank—Sale with Approval of Cashier—Agreed Payments to Bank by Responsible Purchaser— Stoppage of Sale by Assignee of Bank—Estoppel. —Where wine stored in cellars was mortgaged by the owner to a bank, and, with the approval and consent of the cashier of the hank, according to the usual custom of the hank, a sale of the wine was negotiated to a responsible purchaser, who agreed to pay the price of the wine to the hank on account of the mortgagor, the bank is estopped to maintain foreclosure proceedings to prevent the delivery of the wine to the purchaser pursuant to the contract which it had consented to and induced the parties to make; audits assignee taking after maturity of the notes, with knowledge of the facts, is subject to the same estoppel, and cannot legally, by means of a receiver and injunction in a foreclosure suit, stop the removal and delivery of the wine to the purchaser.</p> <p>Id,—Authority of Cashier—Custom of Bank—Knowledge and Consent of Directors.—Where the cashier of a bank, to the knowledge and with the assent and tacit approval of the directors of the hank, had for many years permitted wine mortgaged to the bank by the same and • other persons to be sold to responsible third parties, under contracts similar to the one in controversy, the hank cannot repudiate the act of the cashier in authorizing the contract in controversy, hut his act is the act of the hank.</p> <p>Id.—Evidence of Cashier’s Authority—Parol and Circumstantial Proof—Implication—Course of