Skookum Lumber Co. v. Sacajawea Lumber & Shingle Co.

Citations

• 107 Wash. 356
• 181 P. 914
• 1919 Wash. LEXIS 762

Syllabus

<p>Chattel Mortgages (61)—Foreclosure—Insecurity of Debt— Reasonable Justification. To entitle a chattel mortgagee to a foreclosure under the insecurity clause when he “deems” himself insecure, he must act in a reasonable manner; and it is no justification for premature suit that the mortgagor had sent away from the mill a few small items of no particular value not impairing the security, which had been greatly increased since giving the mortgage; nor that there was a breach of the warranty in the mortgage against incumbrance by the existence of two conditional sales contracts, known to the mortgagee when it made the loan; nor that the mortgagor was indebted on several outstanding obligations, where the mill had just been completed and when operated would show a net daily profit.</p> <p>Same (61). Upon an issue as to whether plaintiff acted reasonably in “deeming” himself insecure and instituting an action to .foreclose a chattel mortgage on mill machinery before maturity of the debt, the fact that the mortgagee failed to furnish logs or shingle bolts to keep the mill running, as contemplated by a contract between the parties, may be considered as bearing upon his good faith in attempting foreclosure, although the contract did not obligate the mortgagee to furnish the logs.</p> <p>Mitchell, J., dissents.</p>