Farnham v. Knobel

Taylor, C. '

This is ¿nother of the so-called “Lane cases.” John A. Lane was engaged in business as a mortgage loan broker for many years. He became insolvent in 1927. It was then discovered that in many instances money paid to him to be applied on mortgages which he had negotiated had never been so applied but had been retained by him. Much litigation followed to determine whether under the facts of a particular case the loss should fall on the mortgagor or the mortgagee. This is such a case. Statements of the facts and of the conclusions reached in prior cases will be found in Madsen v.…