PEOPLES STATE BANK v. MARLETTE COACH COMPANY

No. 7666.

336 F.2d 3 (1964)

The PEOPLES STATE BANK OF ELLINWOOD, KANSAS, and Marian Isern, Appellants, v. MARLETTE COACH COMPANY, Appellee.

United States Court of Appeals Tenth Circuit.

Rehearing Denied September 23, 1964.


Attorney(s) appearing for the Case

John Q. Royce, Salina, Kan. (E. S. Hampton, H. H. Dunham, Jr., H. G. Engleman, C. Stanley Nelson, Jack N. Stewart and Tom W. Hampton, Salina, Kan., were with him on the brief), for appellants.

Clifford L. Malone, Wichita, Kan. (Mark H. Adams, Charles E. Jones, William I. Robinson, J. Ashford Manka, Mark H. Adams, II, John S. Seeber, Philip L. Bowman and Joe Rolston, Wichita, Kan., were with him on the brief), for appellee.

Before PICKETT, LEWIS and SETH, Circuit Judges.


LEWIS, Circuit Judge.

The determinative question here presented is whether, under Kansas law, a junior mortgagee, after having foreclosed his mortgage and having become purchaser at the foreclosure sale, can require the lien of prior mortgages to be reduced in amount by the application of proceeds paid from an insured fire loss occurring to the mortgaged property, the insurance benefits having been paid to senior mortgagees but applied by them, by agreement with the...

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