American Pacific State Bank v. Fred R. Allen, et al.
Published: Dec. 31, 1994 | Result Date: Nov. 14, 1994 | Filing Date: Jan. 1, 1900 |Case number: BC096294 – $454,572
Facts
On October 11, 1991, Defendants Fred Allen, Jack Sovereign, Lieb Miller, and Sheldon Medall, borrowed $500,000 from Plaintiff American Pacific State Bank on a revolving line of credit for use in their business in El Centro, California. On October 10, 1992, when the promissory note representing the line of credit came due, the parties reached a new agreement pursuant to which the obligation was broken down into 4 parts according to the respective shareholder interests of Defendants. Four new promissory notes were executed, one by each of the 4 Defendants. The 4 separate promissory notes were dated January 5, 1993, (Allen) and March 10, 1993, (Sovereign, Miller, and Medall) though signed on different dates. A dispute then arose over whether Defendant Allen agreed to guaranty the obligations of Defendants Sovereign, Miller, and Medall under their separate promissory notes. These notes totaled approximately $373,000 plus interest. The bank sued Allen on its version of the guarantees. It also sued Sovereign, Miller, and Medall for nonpayment of their notes.
Settlement Discussions
Defendants contend that Plaintiff made no demands and that Defendant Allen offered $10,000 at the start of trial.
Damages
The bank claimed as damages from Allen the principal amounts of the Sovereign, Miller, and Medall notes, plus interest and attorney fees. Principal and interest through November 21, 1994, totaled $443,027.
Other Information
Defendants Sovereign and Miller defaulted; Defendant Medall appeared and stipulated to judgment at the start of the trial. The Court entered judgment against those Defendants in the following amounts: $244,847 as to Sovereign; $53,982 as to Miller; and $155,743 as to Medall.
Deliberation
3 hours
Poll
9-3
Length
7 days
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