Builders Supply & Fuel Co. v. King

It is asserted that prudence require that a material man should make inquiry and rightly apply any such monies coming into his hands from the contractor, and that it is inequitable and unjust that any other rule should prevail. Our attention has been directed to a line of authorities that seem to sustain this contention of the appellant, but we believe that a careful reading of the most of these cases makes this rule depend upon the knowledge possessed by the material man that the payment made is coming from a certain particular owner.

Now in this case there is absolutely no proof of knowledge…