
    CINCINNATI FINANCE CO. v. HONGST, et al.
    Ohio Appeals, 4th Dist., Franklin County
    No. 1243.
    Decided Oct. 3, 1924
    229. CHATTEL MORTGAGES—The owner of a chattel mortgage on an automobile, which allows the automobile to remain in the possession of the mortgagor for purposes of sale, cannot enforce the mortgage against a bona fide purchaser without notice.
    Published only in Ohio Law Abstract
    Attorneys—Watson, Davis, Joseph and Me-Leskey for Finance Company; John A. Con-nor for Hongst; all of Columbus.
   FERNEDING, J.

Epitomized Opinion

Action to foreclose a chattel mortgage upon ah. automobile which was owned by Frank Reeb, doing business under the name of Reeb Motor Sales Company in Columbus. Reeb mortgaged the automobile to the Cincinnati Finance Company for $1050.00 to secure a note on the same. The automobile was kept by the Reeb Motor Sales Co. and sold in the regular course of dealing to Lawrence, Máugán •for $1845.00, in consideration of which was paid $1500.00 in cash and the exchange of another automobile. The chattel mortgage of the Finance Company had been duly filed. Maugan had no actual notice of this chattel mortgage. Reeb failed to account to the Cincinnati Finance Company for the proceeds of the sale, and thereupon this action was brought. In rendering judgment in favor of the defendant, Maugan, the Court held:

1. That in cases where the mortgagee himself waives his right by consenting to the sale of the mortgaged property, he is bound thereby and waives his right to repudiate the sale and claim the property in the hands of an innocent purchaser.  