Much to Use of Del. County Nat. Bank v. Gorsuch

CourtUnited States State Supreme Court of Pennsylvania
Citation160 A. 774,307 Pa. 56
PartiesMUCH to Use of DELAWARE COUNTY NAT. BANK v. GORSUCH.
Decision Date03 February 1932
160 A. 774
307 Pa. 56

MUCH to Use of DELAWARE COUNTY NAT. BANK
v.
GORSUCH.

Supreme Court of Pennsylvania.

Feb. 3, 1932.


Appeal from Court of Common Pleas, Delaware County; Albert Dutton MacDade, Judge.

Action by Max Much, now to the use of the Delaware County National Bank, successor to the Pennsylvania National Bank of Chester, against Charles W. Gorsuch. After the bank had entered a judgment on the defendant's bond, his rule to open the judgment was discharged, and he appeals.

Affirmed.

Argued before FRAZER, C. J., and SIMPSON, KEPHART, MAXEY, and DREW, JJ.

Kingsley Montgomery, of Chester, for appellant.

Paul Lane Ives, of Chester, for appellee.

KEPHART, J.

Much and Gorsuch agreed, on September 30, 1927, to exchange real estate owned by each. Much's real estate was valued at $60,000 and Gorsuch's at $40,000. To complete the transaction, an adjustment of liens to which both properties were subject was necessary. Much's property had a first mortgage of $15,000 which Gorsuch was to assume us part of the purchase price. He also agreed to pay $25,000 in cash, and the remainder, $20,000, in three years, to be secured by a bond and mortgage on the property he received. Gorsuch's properties were subject to a first mortgage of $17,000, and a second mortgage of $10,000. Much agreed to assume these, and the remainder of this purchase price was to be paid in cash. The net cash difference between the parties was $12,000, which was paid by Gorsuch to Much at the settlement. He also executed and delivered a bond and mortgage for $20,000 to Much.

On January 11th following, Much, who had borrowed from the appellee bank $3,000. made an absolute assignment of the bond and mortgage to the bank. It was, however, as between the assignor and assignee, to be used as collateral security for loans to Much from the bank. Before this assignment to the bank, Gorsuch executed a declaration of no set-off, in which he stated that the sum of $20,000 was still due, and that he had "no charge, claim, demand, plea, or set-off upon, for, or against the same in any way or manner whatever." This declaration was delivered to the bank along with the assignment. Thereafter, between January 11, 1928, and March 19, 1929, the bank advanced in all the sum of $25,250 on this and other collateral.

Much was adjudicated a bankrupt in January, 1930, without having paid the mortgages on Gorsuch's property as he had agreed to do. Gorsuch, in May of that year, failed to pay the...

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