First Nat. Bank in Dalhart v. Flack

LUMPKIN, Justice.

This case concerns the question of which of two chattel mortgage liens is the superior. It involves transactions whereby one of two innocent parties must suffer a loss by reason of the defalcation of a third party. E. T. Flack and Lowell A. Wier, ap-pellees, and First'National Bank in Dal-hart (Texas), appellant, are the innocent parties. Robert Walton is the third party. In this opinion the appellant bank is sometimes referred to as appellant. Walton is referred to by name only.

On April 13, 1946, Walton borrowed $4,-766.94 from appellant bank secured by a chattel mortgage on…