Mitchell v. Federal Intermediate Credit Bank
Supreme Court of South Carolina
164 S.E. 136 (S.C. 1932)
Mitchell (plaintiff) took out a loan from the Federal Intermediate Credit Bank (Bank) (defendant), assigning as security the proceeds from the sale of a crop of potatoes to the Bank for two notes, worth $9,000 total. The sale ended up being worth $18,000, but Mitchell did not receive any of the proceeds. The Bank brought suit on the two notes to recover the $9,000, and Mitchell pleaded the above facts as a defense, but did not file a counterclaim. The court found in his favor in that initial suit. Subsequently, Mitchell brought this suit to recover the surplus from the potato sale. Mitchell alleged the same facts as he did in his defense in the initial suit. The trial court held that Mitchell could not bring the claim because it was merged in the original suit. Mitchell appealed.
Rule of Law
Holding and Reasoning (Stabler, J.)