ILNews

Husband’s agreement doesn’t preclude judgment against wife

Back to TopCommentsE-mailPrintBookmark and Share

A company is allowed to sue both parties who executed a promissory note seeking recovery of owed funds because it will still only be entitled to one satisfaction on the debt, the Indiana Court of Appeals ruled Wednesday.

Lori Nicklas argued that Von Tobel Corp. should not have been granted summary judgment on its action seeking a judgment on a promissory note Nicklas and her husband, Shawn, signed in July 2009. The two did not pay off the note in full by the time it matured, so Von Tobel named both Shawn and Lori Nicklas as defendants, as the two were jointly and severally liable to Von Tobel under the note. Shawn Nicklas entered into an agreed judgment with Von Tobel for the full amount owed, plus interest and fees for a total of $34,696.89.

She argued the company was fully compensated through it settlement with her husband, and Von Toble was not entitled to any further recovery. A footnote points out at some point the couple separated and acted individually to defend against Von Tobel’s claim.

Lori Nicklas argued that granting summary judgment to Von Tobel effectively allows it to recover more than $73,000 from her and her husband on a debt with a principal balance of approximately $30,000.

After examining caselaw from as far back as 1872, the Court of Appeals concluded that an agreed judgment against one obligor does not merge and extinguish the obligation of another person jointly and severally liable on the same contract.

The judges pointed out that Von Tobel will not be placed in a better position than before the breach of contract because the company is entitled still to only one satisfaction of the debt. The separate judgments against the Nicklases merely allows Von Tobel the opportunity to recover from one or both of them as contemplated by the express terms of the contract, the judges held in Lori Nicklas v. Von Tobel Corporation, Individually, and d/b/a Von Tobel Lumber; and Von Tobel Lumber Company, Inc., 64A03-1310-CC-429.  

 

ADVERTISEMENT

Post a comment to this story

COMMENTS POLICY
We reserve the right to remove any post that we feel is obscene, profane, vulgar, racist, sexually explicit, abusive, or hateful.
 
You are legally responsible for what you post and your anonymity is not guaranteed.
 
Posts that insult, defame, threaten, harass or abuse other readers or people mentioned in Indiana Lawyer editorial content are also subject to removal. Please respect the privacy of individuals and refrain from posting personal information.
 
No solicitations, spamming or advertisements are allowed. Readers may post links to other informational websites that are relevant to the topic at hand, but please do not link to objectionable material.
 
We may remove messages that are unrelated to the topic, encourage illegal activity, use all capital letters or are unreadable.
 

Messages that are flagged by readers as objectionable will be reviewed and may or may not be removed. Please do not flag a post simply because you disagree with it.

Sponsored by
ADVERTISEMENT
Subscribe to Indiana Lawyer
  1. Hey 2 psychs is never enough, since it is statistically unlikely that three will ever agree on anything! New study admits this pseudo science is about as scientifically valid as astrology ... done by via fortune cookie ....John Ioannidis, professor of health research and policy at Stanford University, said the study was impressive and that its results had been eagerly awaited by the scientific community. “Sadly, the picture it paints - a 64% failure rate even among papers published in the best journals in the field - is not very nice about the current status of psychological science in general, and for fields like social psychology it is just devastating,” he said. http://www.theguardian.com/science/2015/aug/27/study-delivers-bleak-verdict-on-validity-of-psychology-experiment-results

  2. Indianapolis Bar Association President John Trimble and I are on the same page, but it is a very large page with plenty of room for others to join us. As my final Res Gestae article will express in more detail in a few days, the Great Recession hastened a fundamental and permanent sea change for the global legal service profession. Every state bar is facing the same existential questions that thrust the medical profession into national healthcare reform debates. The bench, bar, and law schools must comprehensively reconsider how we define the practice of law and what it means to access justice. If the three principals of the legal service profession do not recast the vision of their roles and responsibilities soon, the marketplace will dictate those roles and responsibilities without regard for the public interests that the legal profession professes to serve.

  3. I have met some highly placed bureaucrats who vehemently disagree, Mr. Smith. This is not your father's time in America. Some ideas are just too politically incorrect too allow spoken, says those who watch over us for the good of their concept of order.

  4. Lets talk about this without forgetting that Lawyers, too, have FREEDOM OF SPEECH AND ASSOCIATION

  5. Baer filed with the U.S. Court of Appeals Seventh Circuit on April 30 2015. When will this be decided? How many more appeals does this guy have? Unbelievable this is dragging on like this.

ADVERTISEMENT