University of Chicago vs Dater

277 Mich 653, 270 NW 175 (1936)

FACTS:
George Dater and John Price, both from Michigan, owned real property in Chicago,
Illinois. Dater and Price entered into a loan with the University of Chicago and a Chicago
property as collateral. The university agreed to lend.

Dater and his wife, Nellie, along with Price and his wife, Clara, executed promissory
notes and a trust deed at a bank in Michigan. The documents were mailed from
Michigan to the university’s agent in Chicago, where the trust deed was subsequently
recorded.

After John Price died, Clara became the owner of at least one-half of the Chicago
property. Four years later, the property went into foreclosure because Clara could not
make payments on the loan. The university filed suit in Michigan state court to collect on
the promissory note.

ISSUE: Whether or not the Illinois law applies

RULING:
THE COURT RULED IN THE NEGATIVE.

Under Michigan Law, Mrs Price is not liable. A married woman cannot bind her separate
estate through personal engagement for the benefit of others. In Illinois law, the case of
Burr vs Beckler stated that the delivery of note and trust deed in a place would mean that
that place is the law that govern as well (mirroring the currenct case at hand).

Thus, it is the Michigan law that will apply.