Bank v. Cannon

This is an action by Phenix Girard Bank against M. Olease Cannon to recover a debt due under a promissory note. The jury rendered a verdict in favor of Cannon. We reverse and remand.

Slocumb Cannon, Inc. was a corporation in the business of selling various appliances. The corporation had been doing business for over twenty years. Slocumb Cannon, Inc. carried on banking activities with Phenix Girard Bank for most of that period.

Until 1977, the Bank often financed Slocumb Cannon, Inc.'s accounts receivable, using a factoring arrangement. The Bank purchased an account at a discounted rate and…