The Federal Intermediate Credit Bank (D) sued Mitchell (P) for recovery on P's notes. P defended the action by pleading that in order to obtain loans from D he had to sell his crops through a grower's association and assign the proceeds as security for the notes and that D had received the proceeds and the notes had not been discounted. P did not counterclaim or ask for any relief. Judgment was rendered for P. P then sued for the proceeds kept by D in excess of the notes. The trial court ruled that P's action was barred on the theory that his affirmative claim was merged in the earlier judgment. P appealed.