United Dairies, Inc. v. Hertzberg

This appeal is prosecuted to a judgment of the United States District Court for the Eastern District of Michigan which construed M.S.A. Section 19.371 of the Michigan Bulk Chattel Mortgage Act, Comp.Laws 1948, § 442.51. The bankrupt executed a bulk chattel mortgage to secure a past consideration, a present consideration, and future advancements. It is conceded that notice was not given to creditors of the mortgagor as required by the statute. The court held that under Section 70, sub. e (1) of the Bankruptcy Act, 11 U.S.C. § 110, 11 U.S.C.A. § 110, the mortgage was void in its entirety as…