Schranz v. I. L. Grossman, Inc.

Plaintiffs brought this action on a promissory note made by defendant I. L. Grossman, Inc. (Grossman), and guaranteed by defendant Evans Mill Supply Co. (Evans), to a third party Pro’s, Inc. (Pro’s), who later transferred these instruments to the plaintiffs. Following a bench trial, the trial court found plaintiffs to be holders in due course of a security interest in these instruments and awarded plaintiffs a judgment of $49,194.77. Defendants, Grossman and Evans, appeal, and plaintiffs cross-appeal from the trial court’s judgment.

As grounds for reversal, defendants maintain that (1) two…