Van Petten v. Oregon Bank

PETERSON, J., Pro Tempore.

The trial court sustained a demurrer to the plaintiffs’ 1 fourth amended complaint, and a judgment was entered for the defendant after the plaintiff’s fifth amended complaint was stricken.

The principal issue on this appeal is whether a lender may be liable in contract to a guarantor for breach of an agreement to lend money to a third person. 2

Plaintiff alleged that it was a partner with an individual in the Van Petten Lumber Company (the lumber company). The lumber company borrowed money from the defendant bank. As a prerequisite to making the loan, the bank required…