[DOWNLOAD] "Montana Bank of Circle, N.A. v. Meyers & Son" by Supreme Court of Montana ~ eBook PDF Kindle ePub Free

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eBook details

• Title: Montana Bank of Circle, N.A. v. Meyers & Son
• Author : Supreme Court of Montana
• Release Date : January 23, 1989
• Genre: Law,Books,Professional & Technical,
• Pages : * pages
• Size : 71 KB

Description

Submitted February 3, 1989 This lawsuit is a debt collection and foreclosure action against the principal Ralph Meyers and Sons (Corporation) and its surety and guarantor, Keith Meyers (Meyers) individually, with additional counts by plaintiff Montana Bank of Circle (Bank) alleging fraud, wrongful conversion and controlling stockholder individual liability (piercing the corporate veil). Defendants counterclaimed against the Bank and filed a third-party suit against the bank holding company, Montana Banksystem, Inc. (MBI), for breach of the implied covenant of good faith and fair dealing The District Court, Seventh Judicial District, McCone County, sitting without a jury, granted summary judgment in favor of the plaintiff Bank on Counts I (default), II (foreclosure of security interest), and VII (individual liability) of its complaint, establishing both defendants' liability on the underlying note and dismissing all other claims. The summary judgment dismissed the counterclaim and third-party action as well The District Court based its summary judgment on the surety and guaranty documents which were signed by Meyers and which the court ruled were in effect at the time the corporation defaulted on its note. Defendants appeal The issue on appeal is whether there is any genuine issue of material fact precluding summary judgment on Meyers'contentions that he is not personally liable for the default of his corporation and that the Bank acted in bad faith toward him individually We affirm I. THE SURETY AND GUARANTY AGREEMENTS Corporation borrowed $293,000 from the Bank on September 30, 1986, and signed a promissory note and security agreement evidencing the debt. Prior to this occasion, the course of dealing between the parties is outlined below: 7-25-83 Loan with $200,00 Guaranty 6-11-84 Loan with Security & $500,000 Surety Agreements 10-30-84 $100,000 Surety Agreement 11-20-84 $150,000 Surety Agreement 6-06-85 $120,000 Loan with Surety Agreement 10-07-85 $300,000 Loan with Security Agreement 9-30-86 $293,000 Loan in Question All of the above loans were repaid prior to the September 1986 loan in question The October 7, 1985, loan was repaid in September 1986 with proceeds from the loan in question. No surety or guaranty documents were executed contemporaneously with the October 1985 loan or the September 1986 loan. Bank argues that none were necessary because the surety documents that had previously been executed between the parties all expressly stated that they were ""open and continuing"" in nature, covering all indebtedness of the principal whenever or however incurred Meyers contends that each surety was attached to a specific note and should be exonerated as a matter of law when each note was repaid; since no surety agreement was executed at the time of the September 1986 loan, he argues that he is not personally liable for the corporate default. Thus, the legal question becomes, what exonerates a surety under this contract?

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