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First State Bank of Sinai v. Hyland

South Dakota Supreme Court
399 N.W.2d 894 (1987)


First State Bank of Sinai (the Bank) (plaintiff) filed suit against Mervin Hyland (defendant) seeking to collect on two promissory notes co-signed by Mervin and his son, Randy. Randy had previously filed for bankruptcy which discharged the outstanding debt. Mervin alleged that he had no recollection of the promissory notes because he was intoxicated after drinking alcohol to excess at the time he purportedly signed the documents. At trial, the evidence showed that, in addition to Mervin’s ongoing alcoholism, he had been involuntarily committed to hospitals to treat the disease. Yet, the court noted that Mervin had been able to transact other business during the same time, including paying for farm goods, purchasing livestock, and driving a vehicle while not under the influence. The trial court held in favor of Mervin. The Bank appealed.

Rule of Law


Holding and Reasoning (Henderson, J.)

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