North Coast Dry Kiln Co. v. Montecoma Investment Co.

Citations

• 82 Wash. 247
• 144 P. 58
• 1914 Wash. LEXIS 1512

Syllabus

<p>Sales — Conditional Sales — Subsequent Mortgages — Rights and Liabilities. A creditor of the vendee, in a conditional sales contract, violates no rights of the vendor by taking from the vendee a chattel mortgage of all its property, including the property conditionally sold, and later assigning the mortgage to creditors under an agreement relieving him of liability as guarantor of the vendee’s debts; since these acts could not disturb the possession or rights of the vendor under its conditional sales contract.</p> <p>Same — Conditional Sales — Rights op Vendor — Actions—Pleading — Fraud. In such a case, a complaint hy the vendor to recover of the mortgagee the amount due on the conditional sales contract, is not aided hy alleging that the mortgage was taken and assigned as the result of a conspiracy to defraud, since they are merely empty accusations to stigmatize acts that appear regular and legitimate, in the absence of allegation of any act on which fraud could justly be founded.</p> <p>Receivers — Sales—Title op Purchaser — Liens and Claims op Others. Where title to property of an insolvent is deraigned through an authorized receiver’s sale, regular in all things, and purporting to convey an absolute title free of all incumbrances, the title conveyed is an absolute title, making priorities between a chattel mortgagee and the conditional seller immaterial.</p> <p>Sales — Conditional Sales — Filing—Place op Filing. A conditional sales contract, filed in the county where the property is situated, but not in the county of the vendee’s residence, as required hy Rem. & Bal. Code, § 3670, is void as to subsequent creditors in good faith.</p> <p>Receivers — Representations op Creditors — Sales—Title op Purchaser. Where a conditional sales contract to a vendee was void as to subsequent creditors in good faith, a receiver of the vendee upon insolvency representing such creditors, takes the title to which the creditors were entitled; and hence purchasers at the receiver