Lain v. Simon

Citations

• 19 S.C. 270
• 1883 S.C. LEXIS 79

Syllabus

<p>1. Where a mortgagee assigned his chattel mortgage to a stranger after giving consent to a purchase of the chattel by another party, and a guaranty that the mortgage should never be used against the purchaser, who was afterwards compelled to pay a second time for such property, the purchaser has a just claim against the mortgagee for the damages to which he (the purchaser) has been subjected by reason of the assignment of the mortgage.</p> <p>2. Even if the purchaser could by legal proceedings have prevented a sale of the chattel under the mortgage, he nevertheless would be entitled to recover for the damages caused him by the fraudulent act of the mortgagee.</p> <p>3. Under the plaintiff’s action for damages for fraud, he might recover damages for the breach of defendant’s guaranty, especially so, as the breach was caused by defendant’s fraudulent transfer of his mortgage.</p>