Gavin v. Hinrichs

In the winter of 1973, John Gavin and Richard Hinrichs, his brother-in-law, formed a corporation, G H Tire Centers, Inc. In order to obtain financing for the new corporation, Sonia Gavin, John Gavin's wife, appellant herein, assigned her interest as payee in a $15,000 note, to the First National Bank of Mobile as collateral for a loan from First National Bank of Mobile to G H Tire Centers, Inc. To protect Mrs. Gavin from personal loss as to her own note, G H Tire Centers, Inc., as maker, executed a $15,000 promissory note dated July 1, 1974, payable on demand to Mrs. Gavin. This note from G H…