Brock v. Yale Mortgage Corporation

Jerry and Joyce Brock (plaintiff and defendant), husband and wife, owned property together as tenants in common. Joyce secretly diverted loan payment money Jerry gave her, causing the loan to default without his knowledge, then took out a new loan from Yale Mortgage Company (Yale) (defendant) in her name alone by forging Jerry's signature on a quitclaim deed transferring his interest to her, and also signed a security deed in Yale's favor. When Jerry discovered the forgery and default, he filed for divorce; the settlement had Joyce transfer her rights back to Jerry and agreed to indemnify him for liability "arising out of [Joyce's] failure to pay [her] debt." Jerry then sued Joyce and Yale to void the deeds and confirm his ownership; the trial court granted the defendants summary judgment, and Jerry appealed.