Dunham v. Stevens
Supreme Court of Missouri
Appeal from Jackson Circuit Court. — Horn. E. L. Scarrilt, Judge. (1) If tbe mortgagee knowingly permitted the mortgagor to remain in possession of the mortgaged property, to sell the same in the ordinary course, and use the proceeds to pay other debts and for his own purposes, and he did not pay the proceeds over to the mortgagee, as required by the terms of the mortgage, this rendered the mortgage fraudulent and void as against creditors of the mortgagor.
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Appeal from Jackson Circuit Court. — Horn. E. L. Scarrilt, Judge. (1) If tbe mortgagee knowingly permitted the mortgagor to remain in possession of the mortgaged property, to sell the same in the ordinary course, and use the proceeds to pay other debts and for his own purposes, and he did not pay the proceeds over to the mortgagee, as required by the terms of the mortgage, this rendered the mortgage fraudulent and void as against creditors of the mortgagor. Russell v. Rutherford, 58 Mo. App. 550; Tennant v. Gallant, 53 Mo. App. 423; Moser v. Claes, 23 Mo. App. 420; Hisey v. Goodwin, 90 Mo.…
1Opinion of the Court
VALLIANT, L.
This is a controversy between creditors as to the priority of their respective liens on a stock of goods of their insolvent debtor. Plaintiff claims under a chattel mortgage; defendants under certain attachments and executions, and one of them under a mortgage. Plaintiff’s mortgage being first in time is therefore first in right unless the defendants make good their charge that it is fraudulent.
The suit is in equity to foreclose the plaintiff’s mortgage and incidentally to have a receiver appointed to hold and dispose of the goods as a decree may direct. The mortgagor and the…
2Cases cited5 opinions
- Bullene v. BarrettSupreme Court of Missouri · 1885
- Rock Island National Bank v. PowersSupreme Court of Missouri · 1896
- Hewson v. TootleSupreme Court of Missouri · 1880
- Goddard v. JonesSupreme Court of Missouri · 1883
- Hubbell v. AllenSupreme Court of Missouri · 1886
3Cited by6 opinions
- State ex rel. Kennan v. Fidelity & Deposit Co.Missouri Court of Appeals · 1902
- Cunningham v. G. F. C. Corp.Court of Appeals of Tennessee · 1951
- Fleisher Bros. v. HindeMissouri Court of Appeals · 1906
- Gee v. Van Natta-Lynds Drug Co.Missouri Court of Appeals · 1904
- Spokane Security Finance Corp. v. Fidelity & Deposit Co.Washington Supreme Court · 1935
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