LaCrosse Boot & Shoe Mfg. Co. v. Mons Anderson Co.

Citations

• 14 S.D. 597
• 86 N.W. 641
• 1901 S.D. LEXIS 66

Syllabus

<p>F. purchased goods on which plaintiff and defendants held mortgages; plaintiff’s mortgage not being recorded until after the purchase by F., who had no notice thereof. F. and defendants agreed that the sheriff should sell the goods; the proceeds to be applied on defendants’ mortgages if sufficient was realized; if not, to hold such proceeds until the relative priority of defendants’ claims were determined. Held, in an action for conversion, that an instruction that if plaintiff did not establish actual notice to F. of its mortgage before the purchase, and to defendants before the agreement with F., the finding should be for defendants, was erroneous, since plaintiff could recover unless the property described in its unrecorded mortgage had since its execution passed, without notice, into the hands of a T)oni -fide purchaser or incumbrancer.</p> <p>Corson, J., dissenting.</p>