Valley National Bank of Cortez v. Chaffin

Opinion by JUDGE BABCOCK Defendants, Gary G. Chaffin and Sherry L. Chaffin, d/b/a Longbranch Saloon, appeal. (1) The judgment in favor of Valley National Bank of Cortez (Valley) on its claims for default upon two notes, and attorneys' fees in the amount of five thousand dollars; and (2) the dismissal of their counterclaims and third-party complaint. We reverse and remand for a new trial. The underlying controversy between the parties concerned two notes of which defendants were makers and Valley was payee. Valley alleged that one of the notes was mistakenly stamped ""paid"" and returned to defendants. Defendants claimed that they had paid the note and asserted the defense of payment and release.