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Husband’s agreement doesn’t preclude judgment against wife

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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.  

 

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  1. Im very happy for you, getting ready to go down that dirt road myself, and im praying for the same outcome, because it IS sometimes in the childs best interest to have visitation with grandparents. Thanks for sharing, needed to hear some positive posts for once.

  2. Been there 4 months with 1 paycheck what can i do

  3. our hoa has not communicated any thing that takes place in their "executive meetings" not executive session. They make decisions in these meetings, do not have an agenda, do not notify association memebers and do not keep general meetings minutes. They do not communicate info of any kind to the member, except annual meeting, nobody attends or votes because they think the board is self serving. They keep a deposit fee from club house rental for inspection after someone uses it, there is no inspection I know becausee I rented it, they did not disclose to members that board memebers would be keeping this money, I know it is only 10 dollars but still it is not their money, they hire from within the board for paid positions, no advertising and no request for bids from anyone else, I atteended last annual meeting, went into executive session to elect officers in that session the president brought up the motion to give the secretary a raise of course they all agreed they hired her in, then the minutes stated that a diffeerent board member motioned to give this raise. This board is very clickish and has done things anyway they pleased for over 5 years, what recourse to members have to make changes in the boards conduct

  4. Where may I find an attorney working Pro Bono? Many issues with divorce, my Disability, distribution of IRA's, property, money's and pressured into agreement by my attorney. Leaving me far less than 5% of all after 15 years of marriage. No money to appeal, disabled living on disability income. Attorney's decision brought forward to judge, no evidence ever to finalize divorce. Just 2 weeks ago. Please help.

  5. For the record no one could answer the equal protection / substantive due process challenge I issued in the first post below. The lawless and accountable only to power bureaucrats never did either. All who interface with the Indiana law examiners or JLAP be warned.

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