Western Fuel Co. v. S. G. Lewald Co.
California Supreme Court
190 Cal. 25, 210 P. 419 (1922)
- Written by Daniel Clark, JD
Facts
S. G. Lewald Company (Lewald) (defendant) owed Western Fuel Company (Western) (plaintiff) money attributable to a coal delivery. Lewald executed a promissory note in favor of Western secured by a mortgage on real property. The face value of the promissory note was adequate to eliminate Lewald’s accounting liability to Western, at least for the purposes of company accounting books. Lewald failed to make any payments on the note. Rather than foreclose on the mortgage securing the note, Western sought to redeliver the note and the mortgage to Lewald and sue on the original coal-delivery debt. Lewald refused to accept the note and mortgage. Western sued Lewald. The trial court held in favor of Lewald, and Western appealed.
Rule of Law
Issue
Holding and Reasoning (Waste, J.)
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