Davon Group Ltd. v. Dyer

PER CURIAM: *

In this diversity action, Davon Group, Ltd. (“Davon Group”) seeks to hold Syd Dyer, Jr. (“Dyer”) personally liable, for repayment of $879,785 based on a loan agreement whereby Davon Group loaned this amount to Dyer. The district court held that Dyer was not personally liable, the due-on-sale clause was unenforceable to impose personal liability on Dyer, and Davon Group must accept the collateral and cancel the note. We affirm.

I. Background

National Communications, Inc. (“NCI”) was formed in 1996 as a Louisiana corporation. Davon Group and other shareholders owned stock in NCI.…