Kranert v. Simon

Citations

• 65 Ill. 344

Syllabus

<p>1. Sale oe goods—bona fide creditor of vendee talcing mortgage on, not affected by subsequent knowledge of the fraud of vendee. Where a bona fide creditor of one who purchased goods and obtained possession thereof by means of fraudulent representations, took a mortgage on such goods.without notice of the fraud: Held, that he was to be regarded an innocent purchaser, and could not be deprived of his rights thus acquired, by a subsequent knowledge of the fraud of his debtor.</p> <p>2. Therefore, where the court, on the trial of an action of replevin (the declaration also containing a count in trover) by the vendor of goods against the purchaser, and a creditor of the latter who had acquired the ' goods under a chattel mortgage given him to secure a debt, etc., instructed the jury that if the creditor of the purchaser took the goods after they had been so fraudulently purchased, with knowledge of the fact of such fraud, which was also set out in a preceding part of the instruction, then the latter was not an innocent purchaser, etc: Held, that the instruction was erroneous, in being directed to the time' of taking the goods under the mortgage, instead of to the time of taking the mortgage.</p> <p>3. If a person, who has purchased goods by means of fraudulent representations, sells and delivers them to his creditor in payment of a preexisting debt, who accepts them bona fide without notice of the fraud, such creditor will be protected as an innocent purchaser against any claim of the original owner, to the same extent he would be if he had paid a new consideration therefor.</p>