City Nat. Bank v. Nelson

A majority of the court hold that the purchaser of a negotiable warehouse receipt, under the Uniform Warehouse Receipts Act (Code 1923, §§ 10505-10564; Uniform Laws Annotated, vol. 3), is not protected against a landlord's lien for rent in any case where he has knowledge of facts which would put a prudent man on inquiry, and which, if followed up, would disclose to him the existence of the lien.

This, of course, is the common-law rule applicable to purchasers of property in general, including nonnegotiable instruments. Lomax v. Le Grand, 60 Ala. 537; Scaife v. Stovall,67 Ala. 237; Townsend v.…