Hartford v. McKeever

Defendant borrowed $143,065 in two separate loans from a Corporation. The Corporation assigned its interest in the notes to a Bank, which assigned the second loan (loan two) to Plaintiff, a municipality. Defendant had fully paid off the first loan (loan one), but determining that Defendant had defaulted on his payment obligations as to loan two, Plaintiff brought an action against Defendant to foreclose on the property. Defendant counterclaimed, arguing, among other things, that he made an overpayment on loan two. The trial court concluded that Plaintiff was liable to Defendant for the total amount Defendant claimed to have overpaid on loan two to Plaintiff and all other prior holders of the note. The Appellate Court reversed, concluding that, in the absence of an express contract provision, “an assignee generally does not assume the original responsibilities of the assignor." The Supreme Court affirmed, holding that the Appellate Court properly determined that Plaintiff, “as the most recent assignee and current holder of Defendant’s note, could not be held liable to repay Defendant for sums that were overpaid on the note before it was assigned to Plaintiff.” View "Hartford v. McKeever" on Justia Law