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FARM CREDIT SERVICES OF AMERICA v. DOUGAN

No. 23102.

704 N.W.2d 24 (2005)

2005 SD 94

FARM CREDIT SERVICES OF AMERICA, f/k/a Farm Credit Services of America, PCA, Plaintiff and Appellee, v. Daniel R. DOUGAN, a/k/a Daniel Rex Dougan; Beverly Dougan, Defendants and Appellants.

Supreme Court of South Dakota.

Decided August 24, 2005.

Attorney(s) appearing for the Case

Timothy M. Engel of May, Adam, Gerdes and Thompson, Pierre, South Dakota, Attorneys for plaintiff and appellee.

James P. Hurley of Bangs, McCullen, Butler, Foye & Simmons, Rapid City, South Dakota, Attorneys for defendants and appellants.

KONENKAMP, Justice.

[¶ 1.] While a lender was in the process of foreclosing on its mortgage loan, the borrowers managed to obtain a new loan to pay off the debt and the foreclosure was dismissed. But the borrowers persisted in their counterclaim against the lender, seeking damages for breach of the implied covenant of good faith and fair dealing for the lender's conduct in attempting to foreclose. The essential complaint was that the lender only granted a two...

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