Warex Terminals Inc. v. Halsted Energy

HURD, District Judge, filed an opinion concurring in part, dissenting in part.

POOLER, Circuit Judge.

Beginning in 1993, A. Tarricone, Inc. (“ATI”) and HQP issued three promissory notes totaling $390,000, as joint and several obligors, to Warex for gasoline purchased on credit (the “Notes”). ATI and HQP secured their obligations under the Notes by mortgages on two properties owned by ATI and a third piece of property owned by its affiliate, Majac Enterprises, Inc. ATI and HQP also executed security agreements.

ATI is owned by three individuals who are officers and directors of Halstead Energy…