Supreme Court of Colorado
Middlesex Safe Deposit and Trust Company v. Jacobs
May 19, 193087 Colo. 445
Summary
The court affirmed dismissal of the mortgage-foreclosure action on two independent grounds. The plaintiff failed to prove that the note had been assigned to it, and the evidence showed that the original payee's bankruptcy discharge eliminated the underlying obligation while the plaintiff failed to establish that it had asserted its claim in the bankruptcy proceedings.
Holding
- Proof of assignment. When the defendant denies assignment of a negotiable instrument, production of the instrument with a purported separate written assignment is insufficient by itself; the assignment must be established by competent proof.
- Effect of the payee's bankruptcy discharge on the collateral mortgage. The plaintiff could not proceed with foreclosure on the collateral note and mortgage when the original payee's debt to the plaintiff had been discharged in bankruptcy, the collateral obligation existed before the bankruptcy, and the plaintiff failed to prove that it filed its claim in the bankruptcy proceedings.
Docket No. 12,289.