Case Name: AMERICAN FINANCE CO. v. BENDER et al
Court: Ohio Court of Appeals
Jurisdiction: Ohio
Decision Date: 1924-02-28
Citations: 2 Ohio Law Abs. 312
Docket Number: No. 1174
Parties: AMERICAN FINANCE CO. v. BENDER et al
Judges: 
Reporter: The Ohio Law Abstract
Volume: 2
Pages: 312–312

Head Matter:
No. 375
AMERICAN FINANCE CO. v. BENDER et al
Ohio Appeals, 2d District, Franklin County
No. 1174.
Decided Feb. 28, 1924
787. MORTGAGES — As between innocent helder of -duly recorded chattel mortgage and subsequent innocent purchaser of property, former prevails.
Attorneys — R. J. Beatty, for American Finance Co.; H. Kohn, for Katz; all of Columbus.

Opinion:
BY THE COURT.
Epitomized Opinion
Published Only in Ohio Law Abstract
Action for the foreclosure of a mortgage on an automobile. Bender purchased an automobile from the Haynes Motor Co. and executed as part consideration of the purchase, a chattel mortgage which, together with the note securing it, was transferred in due course and for value to the Finance Co. Subsequently the Motor Co. retook the automobile from Bender, and sold it to Katz, an innocent purchaser. In rendering a decree for the Finance Co., the Court of Appeals held:
The chattel mortgage having been regularly delivered and transferred to the plaintiff, must in our judgment, stand unless the plaintiff or its agent had notice of the fraud perpetrated by the Motor Co. in retaking the automobile and selling it for cash. There is no evidence of such notice. Though Katz is an innocent purchaser, as against the Motor Co., he was charged with notice of the mortgage which had been duly filed of record.