Daniels v. Pacific Brewing & Malting Co.

Citations

• 86 Wash. 416
• 150 P. 609
• 1915 Wash. LEXIS 1211

Syllabus

<p>Fraudulent Conveyances — -Preferences — Right to Make — To Mortgagees — Validity of Mortgage — Appeals —• Moot Question. Where failing debtors in good faith gave a preference to mortgagees under a chattel mortgage, which covered future additions to the stock and allowed possession hy the mortgagors and sales in the course of trade, the validity of the mortgage, through the failure to apply all the’ proceeds of sales in extinguishment of the debt, is a moot question; since preferences by failing debtors are valid.</p> <p>Same — Preferences—Sales in Bulk — Statutes. A preference by a failing debtor by the transfer of a stock of goods, does not fall within the sales-in-bulk act, Rem. & Bal. Code, § 5296, requiring an affidavit and list of creditors upon sales oí stocks of merchandise in bulk; since there is no sale, within the meaning of the act, where no purchase money passed.</p>