Presby v. Melgard

Citations

• 48 Wash. 689
• 94 P. 641
• 1908 Wash. LEXIS 946

Syllabus

<p>Chattel Mortgages — Priorities — Application op Proceeds — Banks and Banking — Evidence—Admissibility. In an action by a second mortgagee of chattels to charge the first mortgagee, a banker, with sums received from the mortgagor which should have been applied to discharge the first mortgage, because (as alleged) proceeds of the mortgaged property, evidence on the part of the defendant is admissible to show that the sums received from the mortgagor were deposits derived in part from other sources than the mortgaged property, all made in one account, against which the mortgagor checked as a depositor.</p> <p>Same — Failure op Second Mortgagee to Object to Application. A banker, holding a first mortgage on a flock of sheep, their increase, and the clip of wool, upon which there is a second mortgage upon the sheep only, is not required to see that the proceeds of the wool, deposited in the bank by the mortgagor, is applied to discharge the first mortgage, where the mortgagor and second mortgagee had been partners, were both present when the mortgagor made the deposit and checked against the same, paying part of the proceeds to each mortgagee and part to a third person, the second mortgagee making no objection at the time, and where at the time of the deposit, the first mortgagee had sold an interest in, and was only part owner of, the bank.</p>