Fidelity & Columbia Trust Co. v. Schmidt

Opinion of the Court by

Judge Wlliis —

Affirming.

The questions raised by this record are difficult, some of them are new, and all of them are interesting and important. They grew out of the insolvency of the Louisville Title Company. The controversy revolves around the pivotal question whether the borrower or the bondholders must suffer the loss arising from the dissipation of payments made by the borrower to the title company, trustee, as required by the contract. The bondholders claim to be bone fide purchasers for value without notice and before maturity of negotiable instruments, which…