Bennett v. Ellis
Bennett v. Ellis
Opinion of the Court
This action is upon a promissory note for $300 given by defendants to the Pierre Savings Bank, of -which the plaintiff is receiver, for the benefit of, creditors. A verdict was directed for plaintiff, and defendants appealed from the judgment rendered thereon.
Defendants’ answer is as follows: “Come now the above-named defendants, and, for answer to plaintiff’s complaint herein, deny each and every allegation, matter, fact and thing in plaintiff’s complaint contained. For a second, separate and independent defense, and for the.purpose of this defense only, the defendants allege that if any such note was signed by these defendants, or either of them, said note was so signed as sureties only, and not as principals; that plaintiff, by neglecting and refusing to collect the same from the principals, who were primarily liable for the payment thereof, promptly, when the same was due, released these defendants from all liability
Counsel for appellants cited several California decisions in support of the contention that there can be but one action for the recovery of any debt secured by mortgage. Such decisions are based upon a statute which does not exist in this state. Code Civ. Proc. Cal. § 726. Here the right to maintain more than one action is expressly recognized and provided for. Comp. Laws, §§ 5432, 5434, 5435; St. Paul Fire & Marine Ins. Co. v. Dakota Land & Live Stock Co., 10 S. D. 191, 72 N. W. 460. Furthermore, the action instituted by Mr. Bennett in his individual capacity to confirm his individual tax title was not an action for the recovery oi the indebtedness involved in this action, and, if it had been instituted 'by the bank, defendants’ answer contained no allegations under which the fact could have been properly proved. The judgment of the circuit court is affirmed.
Reference
- Cited By
- 5 cases
- Status
- Published
- Syllabus
- 1. In an action by the assignee of a bank on a note, defendants’ answer set up that the note was signed by them as sureties only; that they were released from liability thereon by failure of plaintiff’s assignor to enforce the liability of the principals; that there was no consideration for its execution; that it was to be paid oat of a certain fund, and that it was not intended to create a personal liability, — and an accord and satisfaction. The evidence disclosed that the note was given for a pre-existing debt, and secured by mortgage on certain land; that prior to the present action plaintiff acquired a'tax title to the land, in his individual capacity, and took a decree confirming title in himself. Held, that this evidence did not tend to establish any of. the alleged defenses, and it was therefore proper to direct a verdict for plaintiff. 2. Comp. Laws, §§ 5432-5435, providing that complaints in proceedings to foreclose mortgages shall state whether or not any judgment at law has • been obtained for the same debt, etc., and that where such judgment has been obtained no further proceedings shall be had, unless an execution has been issued on such judgment and returned unsatisfied, do not confine a mortgagee to one action for his debt, but recognize his right to maintain successive actions until satisfaction is obtained, 3. A prior action instituted for the purpose of confirming an individual tax title to certain land mortgaged to the bank of which the tax-title holder was president did not constitute an action for the recovery of the indebtedness to the bank, so as to estop the president, as assignee of the bank, from subsequently suing on the mortgage.