Union Carbide Corporation, a Corporation v. Sidney Katz

FAIRCHILD, Circuit Judge.

Plaintiff Union Carbide sought recovery from defendants Harold Rosen and Sidney Katz on a contract of guaranty. 1 The district court entered judgment against Rosen, but in favor of Katz. Plaintiff appealed from the latter portion.

Plaintiff sold merchandise on credit to Automotive Warehouses, Inc. In the summer of 1969, plaintiff decided to require a personal guaranty of payment of the corporate indebtedness. Rosen, president of the corporation, and Katz, a stockholder, signed a guaranty prepared by plaintiff.

The guaranty recited that it was in consideration of…