Irving Sulmeyer, Etc. v. Miller Engineering Co.

CHAMBERS, Circuit Judge.

This case is the aftermath of Miller v. Sulmeyer, 9 Cir., 263 F.2d 513. There we held that when bankruptcy eventuated the Millers lost the lien of a chattel mortgage because of 79 days delay in the recording thereof. The mortgaged personal property having been repossessed and sold by the Millers to a bona fide purchaser (and thus unrecoverable), we reluctantly upheld the district court in awarding the trustee damages against the Millers for the amount of $82,500, the proceeds of the sale. Our mandate did not foreclose consideration of whether the Millers were entitled…