County Plains Corp. v. Nosband Corp.

The action is to foreclose a mortgage, with demand for deficiency judgment. The appellant, Nosband Corporation, interposed an answer which contained three counterclaims. On motion all were struck out as improper and insufficient in law. We are here concerned only with the sufficiency of what is termed the “ third counterclaim.” The particular question presented is, whether this counterclaim is “ a cause of action arising out of the contract or transaction set forth in the complaint as the foundation of the plaintiff’s claim or connected with the subject of the action.” (Civ. Prac. Act, § 266.)