Sherberg v. First Nat. Bank of Englewood

I dissent. The essential facts involved, I think, are these: Sherberg contracted with Essert for the construction of two dwelling houses on his land. At the suggestion of Essert, Sherberg applied for a $15,000 loan from defendant bank, where Essert did business, to complete the construction of one of the houses. Sherberg contacted Smoot, the president of defendant bank, told him that Essert was his contractor and had a house under construction and wanted a loan, as he testified, for the purpose of making future payments to be applied on the indebtedness that would be incurred therein,but…