Leahy

The plaintiff, a banking corporation, which had loaned the defendants, produce growers, certain sums of money, filed this suit to recover on promissory notes and obligations of defendants and to foreclose a chattel mortgage given to secure the aforesaid indebtedness.

A receiver was appointed who took possession of the crops, marketed the same and who holds the proceeds. The defendants defaulted and as against them plaintiff made sufficient proof to support a decree of foreclosure which followed.

Intervener, an eastern produce company, appeared in the action claiming an equitable lien upon the crops with a preference of demand against the proceeds of the crops and also claiming damages. The court below found against the intervener and this appeal follows.

A detail of the situation becomes necessary. The defendant grower and producer will be referred to hereinafter, for brevity, as the Leahy Company.

The Leahy Company had been engaged for some years in growing cantaloupes and lettuce in Imperial Valley, California, and in the state of Texas. In connection with its business it borrowed sums of money from plaintiff bank aggregating $130,000; it also borrowed from Eck Company, as…