Taylor v. Striplin

Summary

The Alabama Supreme Court affirmed a summary judgment awarding ownership of a certificate of deposit to Larry D. Striplin after E. Ted Taylor paid the remaining debt secured by the certificate. The court held that Taylor, as a subrogee, acquired no greater rights than the bank had and that the plain language of the pledge agreement extinguished Striplin's liability once the RSN loans were paid in full. The court did not reach the trial court's alternative holding concerning lack of consideration.

Holdings

1. Taylor, as subrogee, acquired only the rights and remedies that The Bank possessed under the Striplin pledge agreement and could acquire no greater rights.
2. Striplin's liability under the pledge agreement was extinguished when Taylor paid the remaining principal and interest due on the RSN loans before the certificate of deposit could become chargeable.
3. Summary judgment for Striplin was proper because the undisputed facts and unambiguous pledge agreement established that Taylor had no enforceable right to charge the certificate of deposit.

Questions Presented

1. Whether Taylor, as a surety and subrogee of The Bank, could enforce the Striplin pledge agreement after Taylor paid the RSN loans in full.
2. Whether the plain language of the Striplin pledge agreement permitted The Bank or Taylor to charge the certificate of deposit when no balance remained due and payable after the applicable period following default.
3. Whether the trial court properly entered summary judgment for Striplin.

Disposition

affirmed