Beehive Security Company v. Fred G. Bush

WADE, Justice. The Beehive Security Company, an industrial loan corporation, appellant herein, filed a complaint containing two causes of action in which it sought recovery for sums allegedly due on two promissory notes secured by mortgages in two separate accounts with it and for the foreclosure of the mortgages. One of the causes of action on an account was dismissed at pretrial by the court. No appeal was taken from this action by the court. The cause of action based on the other account was tried to the court without a jury. The issue presented, and which the trial court found adversely to plaintiff Beehive, was the defendant's contention that even though this note and mortgage appeared to be valid on its face, it was not binding upon him because it did not result from any valid transaction for which he received consideration.