Ruegsegger v. McCarley

This is an action for damages and restitution by the purchasers of a house against the builder-seller of the house, who failed to convey clear title. As a result, the purchaser was required to pay off a construction mortgage with a balance of $19,395.73, in addition to payment of the purchase price in full in the sum of $23,866.

Defendants’ answer alleged, among other things, that defendants had filed a petition for voluntary bankruptcy, in which plaintiffs were listed as creditors and in which plaintiffs’ claim was one from which a discharge would be a release, and prayed that plaintiffs’…