Maynard v. Shaw

Citations

• 246 Pa. 330
• 92 A. 204
• 1914 Pa. LEXIS 515

Syllabus

<p>Fraud upon creditors •— Chattel mortgages — Possession by mortgagor — Death of mortgagor — Decedent’s debts — Lien—Equity —Demurrer.</p> <p>1. While a chattel mortgage is valid between the parties thereto, as to the creditors of the mortgagor or as to any purchaser from him for value and without notice, it is worthless if the mortgagor continues to hold possession of the chattel mortgaged. The fact that the mortgage may be recorded, does not except it from the general rule, such an instrument not being within the recording acts.</p> <p>2. A bill in equity alleged that plaintiff was the payee of the note of a decedent, that such decedent had mortgaged to plaintiff certain chattels situated on land owned by a third person, and occupied by the maker of the note under a lease. The mortgage was recorded, but the mortgagor retained possession of the mortgaged property until his death. The bill alleged that decedent died in debt, that certain of his creditors claimed that title to the chattels was vested in the estate subject to their claims and that the chattels were in the possession of decedent’s wife and prayed that the possession thereof be delivered to plaintiff. Held, on demurrer, that the court did not err in dismissing the bill.</p>