E. T. Flack v. First National Bank of Dalhart, Texas

Summary

The Texas Supreme Court held that there was sufficient evidence for a jury to find the bank had notice of the petitioners' ownership of the cattle, and therefore the bank was not a bona fide mortgagee. Consequently, the petitioners' conditional sale contract was given priority over the bank's chattel mortgage lien, affirming the trial court and reversing the Court of Civil Appeals.