Guardian State Bank v. Stangl

STEWART, Justice:

Guardian State Bank (“Guardian”) appeals a judgment against it on defendant Stangl’s counterclaim.

Stangl was a fifty-percent shareholder in, and an officer and director of, Sargetis Fine Cars, Inc., a car dealership in Price, Utah, which Stangl co-owned with John Sargetis. In August, 1979, the dealership obtained a loan of $150,000 from Empire State Bank, the predecessor of Guardian. The dealership executed a promissory note (the “Sargetis note”) for $150,000 payable on demand. Stangl and Sargetis executed continuing guaranties of all debts and obligations owed Guardian by…