Cardwell Investment Co., Inc., a Corporation v. United Supply & Manufacturing Co., a Corporation

BREITENSTEIN, Circuit Judge.

The prime issue is whether there was a novation. Appellant-defendant, Card-well Investment Company, Inc., owned two oil drilling rigs which it sold to Smith under a conditional sale contract. Smith later entered into a lease-purchase agreement with Bushager covering the rigs. While this agreement was in effect, Bushager mortgaged the rigs to appel-lee-plaintiff, United Supply and Manufacturing Company. Smith desired to be relieved of his obligations to Cardwell and arranged a meeting of the parties interested in the rigs. Subsequently, Cardwell sold the rigs to…