Greer v. Newland

Citations

• 70 Kan. 310
• 77 P. 98
• 70 L.R.A. 554
• 1904 Kan. LEXIS 42

Syllabus

<p>SYLLABUS BY THE COURT.</p> <p>Chattel Mortgage — Constructive Notice — Commission Merchant Held Liable on an Implied Contract. A commission merchant who receives mortgaged cattle sent to him for sale without the consent of the mortgagee, and in violation of the terms of the mortgage, and who sells them and pays the proceeds to the consignor without actual notice of the mortgage, but with constructive notice imparted through its record, is liable to the mortgagee in an action upon an implied contract to pay him the proceeds of the sale.</p> <p>SYLLABUS BY THE COURT.</p> <p>1. Chattel Mortgage — Commission Merchants, without Notice, Held Not Liable on Implied Contract. A commission merchant who receives mortgaged cattle sent to him for sale without the knowledge or consent of the mortgagee, and in violation of the terms of the mortgage, and who sells them and pays the proceeds, less his commission, to the consignor, without notice of the mortgage, does not derive such a benefit from the transaction as to authorize the mortgagee to waive the tort and recover in an action upon an implied contract.</p> <p>2. -- Record Held Not to Impart Constructive Notice. The filing of a chattel mortgage for record does not impart constructive notice to a commission merchant to whom the mortgaged property is sent for sale and who sells it and pays the proceeds, less his commission, to his consignor.</p>