Royal Tire Service, Inc. v. Shades Valley Boys' Club

BOULDIN, Justice.

The bill was filed to enjoin the foreclosure of a chattel mortgage because of failure or partial failure of consideration. The mortgage was given to secure a negotiable promissory note.

A controlling issue is whether the respondent was a holder in due course under the Negotiable Instruments Law (Code 1923, § 9029 et seq).

The Shades Valley Boys’ Club undertook to build a clubhouse in Homewood. One of the members, Will Frank, had donated sufficient standing timber from which lumber could he cut to build the house. The club entered into a written contract with L. M. Roper, a…