Columbia Basin Wool Warehouse Co. v. First Nat. Bank of Fairfield

DIETRICH, District Judge.

The equities of the controversy are scarcely open to question. The fund in dispute represents the proceeds of the sale of sheep upon which plaintiff had a valid mortgage duly recorded. Without the plaintiff’s consent the sheep were sold by the mortgagor, who delivered the draft for the purchase price to the defendant bank, with instructions to send it, or rather to send the proceeds, after collection, to the plaintiff, to apply on the mortgage indebtedness. In violation of this understanding the bank applied part of the money, when collected, to the discharge of the…