Traders' Land Co v. Abbott Realty Co

• Citation: 207 N.C. 463,177 S.E. 335
• Decision Date: 12 December 1934
• Docket Number: No. 530.,530.
• Court: North Carolina Supreme Court
• Parties: TRADERS' LAND CO. v. ABBOTT REALTY CO. et al.

177 S.E. 335

207 N.C. 463

TRADERS' LAND CO.

v.ABBOTT REALTY CO. et al.

No. 530.

Supreme Court of North Carolina.

Dec. 12, 1934.

Appeal from Superior Court, Mecklenburg County; Stack, Judge.

Action by the Traders' Land Company against the Abbott Realty, Company and John Sprunt Hill. From a judgment sustaining ademurrer filed by second named defendant, plaintiff appeals.

Affirmed.

The complaint alleges that on June 13, 1927, F. D. Lethco executed and delivered two promissory notes, aggregating $10,000, payable to I. W. Stewart. The notes were secured by deed of trust upon certain property owned by the maker. Thereafter Stewart indorsed the notes to the plaintiff, and the plaintiff duly indorsed said bonds and negotiated the same to the Commercial National Bank of Charlotte, N. C. Subsequently Lethco and wife conveyed the land described in the deed of trust to the defendant Abbott Realty Company, and said grantee "assumed liability for and the payment of said bonds and interest thereon." On December 10, 1929, Abbott Realty Company borrowed $5,000 from the defendant John Sprunt Hill, and executed a second deed of trust upon the property to secure said note. Prior to July 10, 1930, "said Commercial National Bank, being the owner and holder of the bonds herein mentioned aggregating the sum of $16,000.-00, served notice upon said defendant, John Sprunt Hill, that said bonds were past due, and unless said Abbott Realty Company made prompt payment thereof, foreclosure would be had."

It was alleged that "John Sprunt Hill, defendant, for the purpose of deferring the foreclosure of said deed of trust * * * and in consideration of extension of the foreclosure of said deed of trust, did, on or about July 10, 1930, covenant and agree that if the said Commercial National Bank would extend the time of payment of said bonds until the period between the first and tenth of September, 1930, then and in such event said defendant, John Sprunt Hill, would place a new loan of $16,000 on said property and make payment of the said bonds of $16,000 owned by said Commercial National Bank, thereby relieving the estate of said F. D. Lethco of liability upon said notes." The time of payment was extended until September 10, 1930, when the bank demanded payment of said bonds and the defendants failed and refused to pay same. Foreclosure resulted, and the property was duly sold for $11,329.50, thus creating a deficiency of $4,670.50, plus interest. Plaintiff was required by the bank to pay said deficiency, and thereupon brought suit against the defendants to recover the said sum of $4,670.50.

The defendant Abbott Realty Company filed an answer admitting that John Sprunt...