Daas v. Contract Purchase Corp.

These consolidated appeals involve the question whether, under the circumstances here, a “floor plan” chattel mortgage given by an automobile dealer to a finance company covering automobiles in the dealer’s stock for sale, is a valid lien as against subsequent purchasers of such automobiles, without actual notice or knowledge of such lien. These two plaintiffs purchased automobiles from the defendant Dave Collier, an automobile dealer, which were covered, by properly filed floor plan chattel mortgages which he had executed to the defendant Contract Purchase Corporation. Subsequently, and…