Case ID: misc_12/html/0329-01.html
Source: Caselaw Access Project
Author: {"author": "\n      McAdam, J.", "license": "Public Domain", "url": "https://static.case.law/"}
Date Created: 2024-08-24T03:29:51.129683

The David Stevenson Brewing Co., Respondent, v. Caspar Iba et al., Appellants.
    (New York Superior Court
    General Term,
    May, 1895.)
    An assignee in good faith and for value of a chattel mortgage which has been duly filed obtains no preference over a prior mortgage which was subsequently filed, where his assignor knew of such mortgage and could claim no preference.
    Appeal by defendants from judgment directed by the court at Equity Term.
    
      Joseph Steiner, for appellant Iba.
    
      A. da G. Steelcler, for appellants Lewis.
    
      W. G. Me Crea, for respondent.
   McAdam, J.

This is a suit by the plaintiff to have a chattel mortgage made to it by George J. Sawyer, though subsequently filed, declared prior and superior to one made by him to Caspar Iba, and assigned to the defendants Lewis, on the ground that Iba, the assignor, at the time of the execution of the mortgage to him, knew of the existence of the mortgage to the plaintiff, and had agreed that the same "should be a prior lien to his, and for damages by reason of the defendants’ conversion of the property covered thereby.

The case presented a conflict of evidence, and the trial judge, on evidence sustaining the finding, held with the plaintiff on the facts, and as conclusions of law decided that the chattel mortgage given by Sawyer to Iba, although first filed, was subject to the prior lien of the chattel mortgage held by the plaintiff; that Iba took his mortgage for an antecedent debt, except as to the sum of twelve dollars, and that the defendants Lewis, as assignees, took the title .of their assignor and nothing more.

The rule is that an assignee in good faith and for value of a recorded mortgage gets no preference over a prior unrecorded mortgage by reason of such record, when his assignor could not claim it. Greene v. Warnick, 64 N. Y. 220; Decker v. Boice, 83 id. 215 ; Rapps v. Gottlieb, 142 id. 164.

We find no error and the judgment appealed from must be affirmed, with costs.

Sedgwick, Oh. J., concurs.

Judgment affirmed, with costs.