Automobile Equipment Co. v. Motor Bankers Corp.

Defendant Community Motors, Incorporated, was engaged in the business of selling at retail new Nash automobiles. Its salesroom in Detroit was rented from defendant Samuel J. Schoneman and another. The dealer was in arrears for rent near $650 or more. To secure the rent, the dealer gave to Schoneman a purchase agreement covering a new car, and it was agreed that the car remain on the floor of the dealer’s salesroom. Concededly this agreement was in the nature of a mortgage. It was not filed of record. The dealer was indebted to plaintiff $733.26 for merchandise. Plaintiff pressed for payment,…