Rodgers v. Peckham
California Supreme Court
120 Cal. 238, 52 P. 483 (1898)
- Written by Daniel Clark, JD
Facts
William Peckham (defendant) mortgaged his property to Thomas Hughes to secure promissory notes Peckham had issued to Hughes. Hughes, without informing Peckham, later assigned the notes and mortgage to Alexander Montgomery (plaintiff). Hughes properly recorded his assignment to Montgomery. A couple of years later, Hughes, having forgotten about the assignment to Montgomery, contacted Peckham offering to cancel the notes and mortgage if Peckham would convey to property to Hughes. Peckham accepted the offer, conveyed the property to Hughes, and ceased making further payments on the notes. Montgomery had no knowledge of this transaction between Hughes and Peckham. A year later, Hughes sold the property to Josephine Leidig (defendant) for cash. Montgomery initiated a judicial foreclosure action. The trial court entered judgment of foreclosure, and Peckham and Leidig appealed.
Rule of Law
Issue
Holding and Reasoning (Belcher, C.J.)
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