Morley-Murphy Co. v. Jodar
Morley-Murphy Co. v. Jodar
Opinion of the Court
A mortgagee has no advantage of lien against other creditors under a mortgage on a stock of goods left in possession of the mortgagor, and from which the mortgagor is permitted to make sales and apply the proceeds of such sales to his own use. Sec. 241.14, Stats. In the case before us, the mortgage contained no provision as to what should be done with the proceeds of the sales of the stock of goods covered by the mortgage. The evidence shows that the mortgagee consented to sales by the mortgagors in the ordinary course of trade and retail dealing, and permitted the application of the proceeds to the private use of the mortgagors. The facts of the matter place the case within the rule recognized in Ross v. State Bank of Trego, 198 Wis. 335, 224 N. W. 114. The taking possession of the mortgaged property by the appellant did not destroy rights of other creditors, for that action by the mortgagee could not change the terms of the contract which established the relation and fixed the rights of the mortgagors and mortgagee, which in this case did not exclude creditors from reaching the property to satisfy their claims against the mortgagors. Blakeslee v. Rossman, 43 Wis. 116; Durr v. Wildish, 108 Wis. 401, 84 N. W. 437.
The mortgage upon the fixtures was not affected by the rules governing the mortgage of the stock in trade, as set
By the Court. — Judgment affirmed.
Reference
- Full Case Name
- Morley-Murphy Company, and v. Jodar and another, Copartners, Defendants: State Bank of Chilton, Garnishee and
- Cited By
- 1 case
- Status
- Published