Gardner v. Bean

OAKS, Justice:

This is a case of first impression in this state on the right of contribution among co-guarantors of an installment debt. The court gave a judgment for contribution, and defendants appeal. We reverse because the judgment is premature on the facts of this case.

Plaintiff Gardner and defendants Bean 1 each owned 50 percent of the common stock of Firebrand, Inc. (dba Diamond Tire Center). In 1969, with the help of a guarantee from the Small Business Administration (SBA), Firebrand borrowed $150,000 from a Utah bank. Pursuant to SBA requirements, the Beans and Gardner signed separate…