Estate of Voelker, No. 2-57875
| Court | United States State Supreme Court of Iowa |
| Writing for the Court | Heard by MOORE; RAWLINGS |
| Citation | 252 N.W.2d 400 |
| Parties | 21 UCC Rep.Serv. 817 In the Matter of the ESTATE of Ernest E. VOELKER, Deceased. FIRST SECURITY BANK AND TRUST COMPANY, Appellant, v. Arnold VOELKER, Executor of the Estate of Ernest E. Voelker, Deceased, Appellee. |
| Decision Date | 20 April 1977 |
| Docket Number | No. 2-57875 |
Page 400
FIRST SECURITY BANK AND TRUST COMPANY, Appellant,
v.
Arnold VOELKER, Executor of the Estate of Ernest E. Voelker, Deceased, Appellee.
Page 401
Noah, Smith & Ott, Charles City, for appellant.
Alfred A. Beardmore, Charles City, for appellee.
Heard by MOORE, C. J., and MASON, RAWLINGS, LeGRAND and UHLENHOPP, JJ.
RAWLINGS, Justice.
First Security Bank and Trust Company (First Security or claimant) appeals from trial court's adverse adjudication in probate on hearing requested by First Security after denial of its claim against Arnold Voelker, executor of the estate of Ernest E. Voelker, deceased (executor). We affirm.
First Security's claim was predicated on three security supported promissory notes executed and given it by Kenneth Elliott, co-signed by Ernest E. Voelker (decedent), admitted accommodation party. Various payments had been made on these notes, a balance of $10,586.73 being allegedly unpaid and owing.
One item of collateral on the instantly involved supplemental financing statement bearing date July 27, 1973, was sixty acres of growing corn. In drafting this security instrument claimant failed to describe the land upon which the crop was being grown. As a result another of Kenneth Elliott's creditors gained priority over First Security and accordingly received $6,239.06, sale proceeds from the corn.
In resisting First Security's claim the executor contended decedent was released from liability on his accommodation obligation to the extent of collateral lost ($6,239.06) as the result of claimant's negligence in drafting the supplemental security agreement here in question. Trial court agreed, and pro tanto released the accommodation party but allowed the remainder of said claim.
As stated by claimant, the sole issue here raised is:
Page 402
"Whether the failure of the secured party through negligence to perfect a security agreement and financing statement by legally describing sixty acres of corn relieves a guarantor and co-maker on promissory notes from liability to the secured party the claimant in this case."
I. This proceeding for judicial establishment of a contested claim was properly tried in probate as a law action. Consequently, our review is confined to the issue here raised, not de novo. If trial court's findings of fact are supported by substantial evidence, and were not induced by an erroneous view of the law, they will stand. Furthermore, we are neither bound by findings of fact resulting from application of an erroneous rule of law, nor trial court's determination of the law. See Flexsteel Ind., Inc. v. Morbern Ind. Ltd., 239 N.W.2d 593, 596 (Iowa 1976); In re Estate of Northup, 230 N.W.2d 918, 921 (Iowa 1975); Solbrack v. Fosselman, 204 N.W.2d 891, 893 (Iowa 1973); Section 633.33, The Code 1973.
II. At the outset, several statutes presently...
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North Bank v. Circle Inv. Co., 81-227
...N.Y.S.2d 939; Langeveld v. L. R. Z. H. Corp. (1977), 74 N.J. 45, 376 A.2d 931; First Security Bank & Trust Co. v. Voelker (Iowa 1977), 252 N.W.2d 400; American Bank of Commerce v. Covolo (1975), 88 N.M. 405, 540 P.2d 1294; Peoples Bank v. Pied Piper Retreat, Inc. (W.Va.1974), 209 S.E.2d 573......
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Huron County Banking Co., N.A. v. Knallay, H-84-4
...impairment of collateral. Farmers State Bank v. Cooper (1980), 227 Kan. 547, 608 P.2d 929, 936; In re Estate of Voelker (Iowa 1977), 252 N.W.2d 400, 403; Shaffer v. Davidson (Wyo.1968), 445 P.2d 13, 15. See Anderson, supra, at Section 3-606:8. See, also, Annotation, What Constitutes Unjusti......
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