University of Chicago v. Dater

George Dater and John Price, Michigan residents who owned Chicago real property, borrowed $75,000 from the University of Chicago (university) (plaintiff), offering the Chicago property as collateral; Dater, his wife Nellie, Price, and Price's wife Clara (defendants) executed promissory notes and a trust deed at a Michigan bank, which were then mailed to the university's Chicago agent, where the trust deed was recorded. After Price died, Clara became owner of at least half the property, and when the property later went into foreclosure due to missed payments, the university sued in Michigan state court, obtaining a $15,536 judgment against George Dater but judgment in Clara's favor, since under Michigan's coverture law a married woman lacked capacity to enter into such a contract; the university appealed as to Clara.