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FEDERAL LAND BANK OF OMAHA v. SULLIVAN

No. 15890.

430 N.W.2d 700 (1988)

FEDERAL LAND BANK OF OMAHA, A Corporation Plaintiff and Appellee, v. Tom V. SULLIVAN and Judith A. Sullivan, Defendants and Appellants, and United States of America, acting through the Farmers Home Administration, Defendant.

Supreme Court of South Dakota.

Decided October 26, 1988.

Attorney(s) appearing for the Case

Steve M. Johnson of Brady, Reade & Johnson, Yankton, for plaintiff and appellee.

John F. Murphy, Elk Point, for defendants and appellants.

Wanda Howey-Fox, U.S. Atty., Sioux Falls, for defendant.

SABERS, Justice.

Sullivans appeal from a judgment of foreclosure entered in favor of the Federal Land Bank of Omaha (FLB). We reverse.

FACTS

FLB instituted this action to foreclose its mortgage against real estate owned by Sullivans. Prior to trial, Sullivans' attorney wrote a letter to FLB's attorney asking if there was a possibility that the case could be settled. On September 11, 1986, FLB's attorney replied with the following offer of settlement...

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