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Colclasure v. Kansas City Life Insurance Co.

290 Ark. 585, 720 S.W.2d 916 (1986)

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Colclasure v. Kansas City Life Insurance Co.

Supreme Court of Arkansas

290 Ark. 585, 720 S.W.2d 916 (1986)

Facts

Kansas City Life Insurance Company (KCLIC) (plaintiff) loaned $450,000 to Jackie Colclasure and her family (defendants), secured by a mortgage on the Colclasures’ farm. The Colclasures defaulted on an annual installment payment. KCLIC accelerated the maturity date, made demand, and filed suit for foreclosure in chancery court. The Colclasures answered the suit in chancery court and filed suit in circuit court, alleging that KCLIC had agreed to allow a prospective buyer of the farm to assume the debt but then reneged. The Colclasures filed motions to transfer the foreclosure suit to circuit court, to consolidate the cases, and for a jury trial. KCLIC filed a motion to dismiss the circuit-court complaint or, in the alternative, to consolidate the cases in chancery court. The trial court consolidated the cases in chancery court and denied the Colclasures’ demand for a jury trial. The trial court subsequently granted judgment for KCLIC. The Colclasures appealed, arguing, inter alia, that they had the right to a jury trial because KCLIC sought a money judgment.

Rule of Law

Issue

Holding and Reasoning (Dudley, J.)

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