A party is in default when the party fails to make a response to a petition/lawsuit in Missouri. Other than the obvious downside of a default judgment, a defaulting party is not entitled to all notices when in default, either. Under Rule 43.01(a), parties are to be served with every pleading subject to the original…
Legal Articles
Promissory Note Enforcement
Promissory notes are a common legal instrument used in connection with the lending and borrowing of money. They are typically “black and white” cases when it comes to enforcement when there is a breach. To make a prima facie case on breach of promissory note, there needs to be a showing that the (1) maker(s)…
Simple versus Compound Interest on Judgments
In Missouri, Section 408.020, RSMo requires that nine-percent (9%) annual interest typically accrues on monetary judgments. Missouri statutes, however, do not specify whether the interest is simple or compound. Based on case precedent, compound interest is generally not allowable on a judgment. Wallemann v. Wallemann, 817 S.W.2d 548, 549 (Mo. Ct. App. 1991). There are two…
Grounds for Wrongful Foreclosure
In Missouri, the grounds for wrongful foreclosure are limited. Most foreclosures occur outside of the court system through a deed of trust. A foreclosure of a deed of trust is not wrongful when there is a clear right to foreclose under the underlying promissory note and/or deed of trust. Loeb v Dowling, 162 S.W.2d 875, 877…
Failure of Consideration vs. Lack of Consideration: Promissory Notes, Contracts
Promissory notes and contracts are similar in how they are interpreted and how they are to be enforced in court. To prevail on a claim for breach of a promissory note, a plaintiff needs to show (1) that there is a valid promissory note signed by the maker of the note, (2) that there is…
Foreclosure
Given the housing market crisis, foreclosures nationwide are on the rise. In Missouri — because the dominant debt instrument used to purchase a home are Deeds of Trust — foreclosure of a deed of trust can commence only in the event of default in the performance required by the terms of the deed of trust….