Trego County State Bank v. Hillman

Citations

• 104 Kan. 264
• 178 P. 420
• 1919 Kan. LEXIS 239

Syllabus

<p>SYLLABUS BY THE COURT.</p> <p>1. Sale — Merchandise—Bulk-sales Law Not Complied With — Subsequent Attachment Lien — Right of Subrogation. Where the sale of a stock of- merchandise and fixtures is void because of failure to comply with the provisions of the bulk-sales law (Gen. Stat. 1915, §§ 4894, 4895), the purchasers, although they act in entire good faith, and pay full value, are not entitled to subrogation to claims of general creditors as against a debt due to a creditor who has secured a valid attachment lien upon the stock and fixtures subsequent to the sale.</p> <p>2. Same — Subrogation—Equity. Subrogation is an equitable right, and in such a case, equity follows the law and cannot ignore the rights procured by the diligent creditor.</p>