Shurtleff v. Forney
Shurtleff v. Forney
Opinion of the Court
This case presents the question of whether or not the plaintiff Shurtleff had waived a deficiency judgment against the defendant Forney. The trial court found that a waiver had been made. We concur.
Plaintiff and wife executed a mortgage to the Lincoln Trust Company on some apartment properties as security for a loan. Subsequently plaintiff conveyed the properties to the defendant and wife, and, as a part consideration, the defendant assumed and agreed to pay the trust company mortgage, and also executed a second mortgage thereon to the plaintiff. The loans became in default. Plaintiff foreclosed his second mortgage, and eventually had confirmation of sale to him under his foreclosure. He filed a motion for a deficiency judgment in May, 1937. In the meantime, the First Trust Company, as successor trustee, began a foreclosure of the first mortgage. Separate litigation also arose as to the ownership of the furniture in the properties, with plaintiff taking a position antagonistic to defendant. A determination was had that defendant owned the furniture. An appeal was threatened.
Over a period of time, effort was made to settle all this litigation. Many letters and other papers are in evidence, making proposals and counter proposals. These indicate a desire on plaintiff’s part to be relieved of the possibility of a deficiency judgment against himself and wife on the first mortgage and to secure possession of the property, rents, and furniture for the bondholders, and likewise a willingness, if certain conditions were met, to waive a deficiency judgment against defendant. The defendant likewise desired to be relieved from the possibility of a deficiency judgment on both mortgages and to be paid for the furniture, and to that end was willing to surrender certain rents and possession of the property. The bondholders wanted possession of the property and the rents.
Plaintiff next contends, assuming that the waiver was established, that such agreement was without consideration. This contention is based upon the proposition that several weeks prior to the August settlement he had assigned his rights as purchaser of the property at the foreclosure sale on the consideration that the trust company waive deficiency
It appears that in June, 1937, plaintiff submitted an assignment of his bid to the trust company, conditioned upon the trust company’s waiving a deficiency against plaintiff and wife. Some of the bondholders objected to plaintiff’s being released. The assignment is shown to have been filed July 27. On that same date, the trust company secured an order from the district court authorizing it to waive the deficiency upon receipt of the assignment. That, however, does not complete the story. The following facts also must be considered:
The evidence indicates that the filing of the assignment and the securing of the court order in July, 1937, was a step toward final settlement of the litigation. This is shown by a number of matters, including the fact that the trust company did not direct its attorney to waive the deficiency until September 3. The defendant, in August, refused to surrender possession of the property, account for rents (both of which acts plaintiff desired he do), or sell the furniture unless he was released from a claim for a deficiency judgment by both the trust company and plaintiff. The trust company did not receive authority to release plaintiff until a meeting of the bondholders on August 23, when authority, conditioned upon a settlement, was voted by a majority of the bondholders. Although plaintiff now claims that he had assigned his bid and been released by the trust company in July, 1937, yet he (for himself and a bondholder) thereafter continued an active participation in the negotiations for a settlement of this litigation, and protested the purchase of the furniture.
“There are two kinds of consideration, — that which confers a benefit upon the promisor and that which causes a detriment to the promisee. Either is a valid consideration which will support a contract.” United States Fidelity & Guaranty Co. v. Curry, 126 Neb. 705, 254 N. W. 430.
Although negotiations were in progress for some time
Affirmed.
Reference
- Full Case Name
- W. Bruce Shurtleff v. Laura D. Forney
- Status
- Published