Ertel v. Radio Corporation of America

This cause originated as an action by a finance company, Economy Finance Corp. (Economy) against its debtor, Delta Engineering Corp. (Delta) for amounts due under a loan and security agreement covering revolving inventory and accounts receivable. Also named as defendants were the guarantors for the payment by Delta, John R. Dugan, President and General Manager of Delta, and John C. Ertel, Secretary-Treasurer of Delta. Delta defaulted on the note, and Dugan’s whereabouts are unknown — leaving only Ertel to face the liability.

Ertel, in response to the original complaint, filed a third-party…