EFFECT OF PLEDGEE'S BREACH OF DUTY ON EXISTENCE OF THE DEBT

When A borrows money from B, and transfers to B possession of A's chattel as pawn, it will be observed at once that B, the pledgee, has become the owner of two things: (a) a contract right or debt against A ; (b) a pledgee's interest in or lien upon the pawn. If the pledgee thereafter, but before payment of the debt, is guilty of a breach of duty in his dealing with the pawn, problems present themselves as to the effect of the pledgee's wrongful conduct on the existence and ownership of the debt and of the lien. One such question is: Should the pledgee's breach of duty with respect to the pawn deprive him in whole or in part of his right to enforce his debt? A discussion of this problem constitutes the subject matter of this article.