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Colonial Cases

Quaker Oats Company v. Epstein Bros, 1932


Quaker Oats Company v. Epstein Bros

Court of Appeal, Palestine
Source: The Palestine Bulletin, 18 May 1932



Appeal Court's Decision

   A principle of considerable interest to the public concerning mortgages was decided in the Appeal Court yesterday, the Chief Justice presiding, in the case of the Quaker Oats Company of Stockholm vs. Epstein Bros. of Kfar Saba.

   The appeal was against a judgment of the District Court of Jaffa, wherein it was decided that a creditor, holding a mortgage as security for his debt, could not sue in the ordinary way, but was obliged first to execute against the mortgage and then only could bring an action for any unsatisfied balance of the debt, if the security proved insufficient to cover it.  The Court relied on Article 757 of the Mejelle.  Against the judgment the Quaker Oats Company appealed.  Mr., Turtledove appearing for the appellants, and Messrs. Shohar and Kadoorie for the respondents.

   After hearing argument the Appeal Court set aside the judgment of the Court below on the ground that, according to Article 730 of the Mejelle a creditor who received a pledge as security for his debt is not, thereby, barred from claiming on the debt itself.

   The case was remitted to the District Court for hearing on the merits.

Published by Centre for Comparative Law, History and Governance at Macquarie Law School