Colclasure v. Kansas City Life Ins. Co.

720 S.W.2d 916 (1986)

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Nature of the Case

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Facts

Life Insurance (D) loaned $450,000.00 to Ps. The promissory note evidencing the debt was secured by a mortgage on Ps' farm. Ps defaulted on an annual installment payment, and D accelerated the maturity date, made demand, and filed suit for foreclosure in chancery court. Ps filed a complaint in circuit court alleging that D had indicated that a prospective buyer of the farm would be allowed to assume the debt, but then would not permit the assumption. Ps filed motions to transfer the foreclosure suit to circuit court, to consolidate the cases, and to demand a jury trial. The trial court consolidated the cases in chancery court, with the circuit court complaint being treated as a counterclaim, and denied the demand for a jury trial. Ps then filed a motion for default judgment. The trial court denied the motion for default judgment, granted judgment for the debt, and, if not paid within 20 days, ordered the security sold at public auction. P appealed.