Savings Bank of San Diego v. Central Market Co.

This action was brought by the plaintiff, a savings bank now in liquidation, to recover twenty-five thousand dollars and interest upon a promissory note, in words and figures as follows:

It is alleged that the note was secured by a second mortgage upon certain real estate, that the first mortgage, which was given to secure the payment of the sum of fifty thousand dollars and interest, had been foreclosed in an action in which plaintiff was made a party defendant; that under said foreclosure the property was sold for the amount due on the first mortgage, and, there having been no redemption within the time allowed by law for a redemption, a deed had been executed to the purchaser and the security had become valueless without any fault on the part of plaintiff. Plaintiff therefore demands judgment for the, amount due on the note against all of the defendants.

The defendants Bryant Howard and M. H. Howard denied the execution of the note by them, and averred that they signed the note merely to ratify the action of the officers of the Central Market Company, which was the true debtor and maker of the note; that the note had been paid by the giving of another note, which was accepted…