Marion Production Credit Ass'n v. Cochran

The court of appeals found that the Cochrans’ counterclaim asserted a claim which avoided the Statute of Frauds and, in fact, stated a cause of action for fraud in the inducement which would have released the Cochrans from their obligations on the notes and the mortgage. We find this holding untenable in light of the record of the transactions and the content of the documents now before us. Accordingly, and for the reasons set forth hereinafter, we now reverse in part and affirm in part.

I

At the outset, we hold that it was error to allow the foreclosure and subsequent sale of the mortgaged…