Orix Credit Alliance, Inc. v. Taylor MacHine Works, Inc., and William D. Metts

KANNE, Circuit Judge.

Orix Credit Alliance, Inc. (“Orix”), an asset-based commercial lender, loaned $400,000 to Gallo Equipment’s Florida division (“Gallo Florida”). To facilitate the capital loan, Orix and Gallo Florida asked Taylor Machine Works (“Taylor”) to provide appraisals of certain Taylor-manufactured equipment owned by Gallo Florida that would serve as collateral for the loan. Orix also asked Taylor to agree to repurchase the equipment if Gallo Florida should default on the loan. Orix received these assurances in the form of a faxed letter on Taylor letterhead signed by William…