Jacobson v. McClanahan
Washington Supreme Court
264 P.2d 253 (1953)
- Written by Rich Walter, JD
Facts
Tom McClanahan (defendant) mortgaged his tavern to secure an installment loan from Priscilla Jacobson (plaintiff). The loan note stipulated that if McClanahan fell behind in making installment payments or gave Jacobson any other reason to doubt McClanahan’s ability to repay the loan, Jacobson could accelerate the repayment schedule without prior notice. McClanahan later sold the tavern to a buyer named Siegel (defendant), who assumed the mortgage and loan note. Through no fault of his own, Siegel mistook the repayment schedule and missed an installment date. Jacobson rejected Siegel’s offer to submit a late payment. Jacobson observed a decline in tavern attendance and feared that Siegel would default on the loan. In fact, there was no real danger of default. Nevertheless, Jacobson invoked the loan note’s acceleration clause, demanded immediate and full repayment of the loan, and sued to foreclose on the mortgage. The trial court entered judgment for McClanahan and Siegel, noting that Jacobson once accepted a late payment from McClanahan, and questioning Jacobson’s refusal to do likewise for Siegel. Jacobson appealed to the Washington Supreme Court.
Rule of Law
Issue
Holding and Reasoning (Mallery, J.)
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