Credit Plan Corp of Houston v. Redisco

COLEMAN, Justice.

This is a suit by a mortgagee against a subsequent mortgagee for damages resulting from the conversion of certain items of used household goods.

The goods in question were sold to Mr. and Mrs. Robert Smith on a time payment plan by a retail merchant. The purchasers executed a written purchase agreement secured by a lien on the furniture, which contract and lien were sold to appellee. The lien was properly recorded.

Subsequently the Smiths borrowed some money from appellant and gave a chattel mortgage on certain furniture as security. The Smiths defaulted on the payments due to…