Gullette v. Federal Deposit Ins. Corp.

The issue in this appeal is whether there was a novation of a note executed by George L. Gullette in 1979 resulting in Gullette’s release from liability on that note. The trial court held that a novation was not established. We agree.

On January 23, 1979, Tom L. Barrow and Gullette, trading as B & G Investors, executed a promissory note payable to Aquia Bank and Trust Company in the amount of $40,000 (the 1979 Note). The 1979 Note was at a 12% interest rate and was payable within 180 days. The 1979 Note made reference to a Guarantee Agreement which was executed by Barrow and Gullette…