Hardin v. State Bank of Seattle

Citations

• 119 Wash. 169
• 205 P. 382
• 1922 Wash. LEXIS 767

Syllabus

<p>Chattel Mortgages (49) — Rights and Liabilities — Use and Disposition by Mortgagor. A finding that a chattel mortgagee of automobiles allowed the mortgagor, a dealer, to sell the cars to innocent purchasers without obtaining a satisfaction of the mortgage is not sustained by proof of loose expressions to the effect that he might sell, but could not make delivery until after release of the mortgage.</p> <p>Same (43-2) — Lien—Recording—Subsequent Purchasers. In view of Rem. Code, § 3662, making the record of a chattel mortgage constructive notice to the world, a mortgagee of automobiles does not lose his lien by allowing the mortgagor, a dealer, to display the cars on his sales room floor and exhibit them to prospective purchasers; since they, having constructive notice, cannot be regarded as innocent purchasers.</p> <p>Same (4) — Validity—Stock in Trade. A chattel mortgage upon a particular automobile held in stock by a dealer is not void as a mortgage upon a shifting stock in trade, as to purchasers charged with constructive notice by record.</p> <p>Holcomb and Mackintosh, JJ., dissent.</p>