Hevern v. Walter E. Heller Western, Inc.

In May, 1984, defendant extended financing to State-line Forest Products, Inc., a lumber company (Stateline). In June, plaintiffs sold logs to Stateline. In late August, Stateline defaulted on its log payments to plaintiffs and later declared bankruptcy. In June, 1986, plaintiffs brought this action for negligence, fraud and outrageous conduct. They claimed that defendant had promised that it would guarantee payment of the amount that Stateline owed plaintiffs for the logs.

The court granted defendant’s motions for directed verdicts on the fraud and outrageous conduct claims. It denied…