Montgomery v. Sping Valley Mining & Irrigating Co.

Citations

• 75 Cal. 128
• 19 P. 178
• 1888 Cal. LEXIS 492

Syllabus

<p>Mortgage op Aiter-acquired Property — Knowledge op Terms op Purchase — Priority. — A prior mortgagee, who pending the negotiations for his mortgage acquires knowledge that the property offered as security belongs to a third person, and was to be purchased by the mortgagor, and that negotiations for its purchase were then pending, is charged with notice of the terms upon which the purchase is made; and where such terms involve the execution by the purchaser of a mortgage to the vendor to secure the purchase price, the latter mortgage, although subsequently recorded, is entitled to priority over the other.</p> <p>Id.—Means on Knowledge — Notice.—A mortgagee, having readily accessible means of. acquiring knowledge of a fact affecting the title to the mortgaged property, which he might have ascertained by inquiry, is charged with notice and knowledge of such fact.</p> <p>Id.—Estoppel — Statements when Operate as.—Statements to operate as an estoppel must be made with the express intention to deceive, or with such carelessness or culpable negligence as to amount to constructive fraud. In accordance with this rule, the statements of the secretary of the defendant corporation, relied on as estopping it from setting up the priority of its mortgage, held, not to operate as an estoppel.</p>