Crowell v. John Hancock Mutual Life Insurance

OPINION

This action originally stemmed from a trustee’s sale of farm property under a deed of trust given as security for a promissory note in favor of respondent, John Hancock Mutual Life. The Crowell family members each personally guaranteed the promissory note in the face amount of $1,280,000 which was executed by Bar Vee Dairy, Inc. The note provided for interest at the rate of 12 percent per annum unless a default occurred, then the percentage escalated to 18 percent.

Bar Vee Dairy, Inc. experienced difficulty in operating the dairy ranch that constituted the property encumbered by the…