Graham Paper Co. v. Pembroke

Citations

• 124 Cal. 117
• 56 P. 627
• 1899 Cal. LEXIS 954

Syllabus

<p>Assignment of Accounts and Bills—Notice to Debtors—Preference of Subsequent Assignee for Value without Notice.—To complete the assignment of accounts and bills receivable as against the debtors, and in order to protect the prior assignee as against a subsequent assignee of the same accounts and bills, for value, without notice of the rights of the prior assignee, he must give notice of his assignment to the debtors owing the accounts and bills; and as between successive assignees thereof, he will have the preference Who first gives notice to the debtors, even if he be a subsequent assignee, provided at the time of taking the subsequent assignment he had no notice of the prior assignment.</p> <p>In.—Agency of Assignor—Control of Accounts—Protection of Bona Fide Purchaser.—Where the prior assignee was a creditor of the assignor endeavoring to obtain security for his claim, and left the accounts and bills in the possession of the assignor as his agent for collection, without any notice of the assignment to the debtors, and possession of the accounts and bills was delivered to a subsequent Iona fide purchaser thereof from the assignor, without notice of the prior assignment, who immediately notified the debtors of his assignment, such Iona fide purchaser is protected against the prior assignee.</p> <p>Id.—Accounting against Assignor—Failure of Evidence.—The court cannot make an order for an accounting against the assignor In favor of the prior assignee, in the absence of evidence that the assignor had made collections as the agent of such assignee.</p>