Facts

Raymond Pangburn, president of RMS Electrical Systems Inc. (RMS), signed a credit application that guaranteed his company's payment of debts. Due to Pangburn's health problems, RMS had to file for Chapter 7 bankruptcy. Walters Wholesale Electric Co., to whom RMS owed an outstanding debt, sued Pangburn for breach of contract.

PLAINTIFF'S CONTENTIONS:
The plaintiff contended defendant was personally liable for RMS' debts pursuant to the credit application he signed before becoming ill.

DEFENDANT'S CONTENTIONS:
The defendant contended he signed the credit application in his capacity as president and was therefore not personally liable.

Damages

The plaintiff demanded $9,700 in damages for the unpaid debt, plus interest and fees.

Result

Judge found for defendant in bench trial.