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University of Chicago v. Dater

Supreme Court of Michigan
270 N.W. 175 (1936)


Facts

George Dater (defendant) and John Price (defendant), both from Michigan, owned real property in Chicago, Illinois. Dater and Price entered into negotiations with the University of Chicago (university) (plaintiff) to borrow $75,000. Dater and Price offered the Chicago property as collateral for the loan. The university agreed to lend Dater and Price the money so long as title to the property was good. Dater and his wife, Nellie, along with Price and his wife, Clara, (defendants) executed promissory notes and a trust deed at a bank in Michigan. The documents were mailed from Michigan to the university’s agent in Chicago, where the trust deed was subsequently recorded. After John Price died, Clara became the owner of at least one-half of the Chicago property. Four years later, the property went into foreclosure because Clara could not make payments on the loan. The university filed suit in Michigan state court to collect on the promissory note. The trial court rendered a $15,536 judgment in favor of the university against George Dater. Additionally, the trial court rendered judgment in favor of Clara. The university appealed.

Rule of Law

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Issue

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Holding and Reasoning (Wiest, J.)

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Dissent (Butzel, J.)

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Dissent (Sharpe, J.)

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