S. Wis. Acceptance Co. v. Paull
| Decision Date | 05 April 1927 |
| Citation | 213 N.W. 317,192 Wis. 548 |
| Parties | SOUTHERN WISCONSIN ACCEPTANCE CO. v. PAULL. |
| Court | Wisconsin Supreme Court |
OPINION TEXT STARTS HERE
Appeal from Circuit Court, Iowa County; S. E. Smalley, Judge.
Action by the Southern Wisconsin Acceptance Company against James T. Paull. Judgment for defendant, and plaintiff appeals. Affirmed.--[By Editorial Staff.]
Replevin by the Southern Wisconsin Acceptance Company against James T. Paull to recover the possession of an automobile. From a judgment dismissing the action, the Southern Wisconsin Acceptance Company appealed.
The acceptance company loaned money, and took a chattel mortgage on three automobiles as security. The chattel mortgage was filed in the office of the proper town clerk. Thereafter the acceptance company knew that the mortgagor had taken the cars to a garage for the purpose of having them sold by the garage. The acceptance company investigated the financial standing and reputation of the garage, and left the matter of sale entirely to the garage, knowing that the garage was to sell the cars and pay the acceptance company what was due on its chattel mortgage out of the proceeds of such sale.
While the cars were in the garage, a salesman employed by the garage sold the car here in question to the defendant Paull for $1,000 in cash and a used car. The salesman absconded with the cash.
The trial court found that the defendant, Paull, exercised reasonable prudence in purchasing the car; that he paid a fair value, acted in good faith, and without any knowledge that the acceptance company had, or claimed to have, any lien or claim against the same.Sanborn, Blake & Aberg, of Madison, for appellant.
James E. O'Neill, of Dodgeville, and T. M. Priestley, of Madison, for respondent.
The single question presented is whether the holder of a chattel mortgage waives his lien under the mortgage when he consents that the mortgagor or his agent may sell the mortgaged property under an agreement that the proceeds of the sale be applied upon the debt secured by the chattel mortgage. This question has not been determined in Wisconsin. Its determination is not affected by the provisions of section 241.14 of the Statutes, because neither by the terms of the chattel mortgage nor by the conduct of the parties were the three automobiles covered by the chattel mortgage treated as a stock of goods.
[1] Both upon principle and upon authority the court is satisfied that it must be held that, as against the defendant who...
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