Opinion ID: 1744940
Heading Depth: 2
Heading Rank: 2

Heading: waiver of the right to accelerate payments?

Text: Phipps next argues that First Federal's letter of August 22, 1983, requesting payment of $1,172, constituted waiver of its right to accelerate her payments prior to September 30, 1983. This is unsound. In 1982, this Court wrote that waiver exists where one in possession of any right, whether confirmed by law or contract, and with full knowledge of the material facts, does or forbears something inconsistent with the existence of the right or of his intention to rely on it. Western Cas. & Sur. Co. v. American Nat'l Fire Ins. Co., 318 N.W.2d 126, 128 (S.D.1982) (quoting Wieczorek v. Farmers' Mut. Hail Ins. Ass'n, 61 S.D. 211, 216-17, 247 N.W. 895, 897 (1937)). See also Noem v. Equitable Life Ins. Co., 37 S.D. 176, 180, 157 N.W. 308, 309 (1916). The record does not support an inference that First Federal was aware that Phipps was no longer in Texas. This was a material fact, from First Federal's point of view. There is an obvious difference between a debtor of fixed abode and one that is unlocated. As full knowledge of the material facts by First Federal was lacking, one of the elements of waiver, set out in Western Casualty, supra, is missing. No waiver occurred. Nor can waiver be based upon First Federal's forbearance regarding Phipps' earlier delinquencies in payment, because the mortgage contained an anti-waiver clause providing that failure to exercise the acceleration option did not constitute a waiver of First Federal's right to exercise it in the event of future defaults. Even without the anti-waiver clause, reinstatement of a time is of the essence clause is not necessary where there is a history of late payment and letters of objection from the mortgagee. Miller v. Uhrick, 146 Ariz. 413, 415, 706 P.2d 739, 741 (App.1985), affirmed, 146 Ariz. 511, 707 P.2d 309 (1985). Here, we note that First Federal did not passively sit by; it sent written notices of delinquencies, made phone calls, and wrote letters in attempts to make Phipps comply with her agreement. Further, Phipps had never before tendered a bad check.