Gertz v. American Discount Corp.

This is an action to recover one third, or $1,-333, of the proceeds realized by defendant from the foreclosure and sale of a chattel mortgage.

Paul R. Gertz, a real-estate broker doing business as Paul R. Gertz & Company, sold an interest in a hotel to Howard F. Smith. On the transaction, Gertz earned a commission of $2,500, which was to be paid by Mr. Smith. On November 22,1949, Mr. Smith gave his note, secured by a chattel mortgage on personal property located in the hotel, to Gertz in the amount of $2,500. Shortly thereafter, Smith was in need of working capital for operating the hotel. It…