Nagel v. Cronebaugh
Florida District Court of Appeal
782 So. 2d 436 (2001)
Marjorie Pierce's $50,000 loan to the Cronebaughs (defendants) for a home purchase was secured by a mortgage and a promissory note providing the payment amount would be calculated once one of three enumerated contingencies occurred, with paragraph one describing it as 'a demand note, due on October 1, 2018' and paragraphs two and three tied to conditions like the home's sale or the Cronebaughs' deaths. After Richard Nagel (plaintiff), representing Pierce's estate, sued to collect on the note, the trial court read paragraph one as unambiguously creating an obligation to pay only by October 1, 2018 absent an earlier triggering condition, and Nagel appealed, arguing UCC section 3-108(c) made the note payable on demand at any time.
Whether a promissory note is a negotiable instrument under Article 3 of the Uniform Commercial Code if the note does not provide a fixed principal amount to be paid.