Carlton Manufacturing, Inc. v. Bauer

Pope, Chief Judge.

Plaintiff Carlton Manufacturing, Inc. sold a division of the corporation engaged in furniture manufacturing, called Madison House, to Madison House Acquisition, Inc. (“Madison House”). In exchange, plaintiff received a promissory note in the amount of $290,000 and a security interest in the inventory of Madison House. As part of the transaction, defendant Steven K. Bauer, president of Madison House Acquisition, Inc., signed a personal guaranty for the note. Upon the alleged default of Madison House on the note, plaintiff attempted to repossess the collateral but plaintiff’s…