Nichols v. McDougal

Blake, J.—

This case presents the problem of where the loss shall fall, as between mortgagor and mortgagee, for the defalcations of a loan broker. The plaintiff brought the action to recover the full amount of a ■promissory note for one thousand dollars, and to foreclose a mortgage given to secure it. The defendant answered, alleging that all but $312.50 of the principal of the note had been paid, and pleaded tender of interest on that amount keeping the loan in good standing. The deféndants Fiebig also filed a cross-complaint against the defendants McDougal and Peternell, in the nature of an…