James Employees Credit Union v. Marion

The plaintiff, James Employees Credit Union, is a corporation organized and conducted pursuant to ch. 186, Stats. The defendant, Marion Hawley, was employed by James Manufacturing Company, and was also a member of the plaintiff credit union. The defendant, Dr. Frank W. Schneider, is a dentist and at no time was a member of said credit union. The defendants gave to the plaintiff a promissory (judgment) note signed by them and payable to the plaintiff in consideration of a loan by the plaintiff to the defendant Hawley. After default in payment, judgment on cognovit was entered July 10, 1956 against the defendants. On November 19, 1956 the court granted a motion of the defendant, Dr. Frank W. Schneider, to set aside the judgment and to permit him to defend the action. Issue was joined and trial was to the court without a jury. Judgment was entered in favor of the defendant, Dr. Frank W. Schneider, vacating the cognovit judgment theretofore rendered against him, discharging him from all liability on the note, and dismissing him as a party to the action. The appeal is by the plaintiff from the judgment. Other material facts are stated in the opinion.