Bergstrom v. Estate of DeVoe

OPINION

This appeal addresses the propriety of an award of damages for breach of contract following rescission of that contract.

FACTS

In early 1984, Gordon LaPointe (“LaPointe”) and Morris Wright (“Wright”) opened what would become Decatur Equipment Rental (“DER”). To be competitive in the equipment rental business, DER needed to borrow $350,000.00 to purchase additional equipment. Valley Bank, under the auspices of the Small Business Administration (“SBA”), was willing to loan DER the necessary funds. The SBA, however, required collateral. LaPointe sought the collateral from his stepfather,…