Kidder v. Beavers

Citations

• 33 Wash. 635
• 74 P. 819
• 1903 Wash. LEXIS 565

Syllabus

<p>Chattel Mortgage—Foreclosure—Right to Contest—Complaint—Sufficiency. A complaint by the receiver of an insolvent corporation to restrain the foreclosure of a chattel mortgage by sheriffs notice, under Bal. Code, § 5876, authorizing any party interested to contest the right to foreclose as well as the amount due, is demurrable for want of sufficient facts when it merely states that the receiver, after diligent inquiry, is unable to state whether the mortgage is valid, or how much of the debt is due, and desires to contest the same, without alleging facts showing that the mortgagee had no right to foreclose, or that the amount claimed is not due.</p> <p>Same—Fraudulent Sale by Officers of Corporation. In such a case, the fact that the officers of the company had fraudulently sold the property to third persons, who were in possession, does not warrant the court in restraining the foreclosure where the mortgage was valid and past due.</p> <p>Same—Receivers—Leave of Court to Foreclose Chattel Mortgage. A mortgagee of personal property belonging to an insolvent corporation in the hands of a receiver is not required to obtain leave of court to foreclose the mortgage by sheriff’s notice, where the property is in the possession of third persons claiming to have purchased it, and the receiver had never been in actual or constructive possession thereof.</p> <p>Receivers—Right to Possession of Property—Chattel Mortgages. Where a receiver of an insolvent corporation claims an interest in mortgaged chattels which were never in the possession of the corporation, he can acquire possession only by one of the methods that might have been pursued by the corporation; and the mortgagee, if a stranger to the action, may seize any property not in the possession of the receiver.</p>