C.I.T. Corporation v. Duncan Grading and Construction, Inc. Lloyd K. Duncan, Inc. Lloyd K. Duncan and Betty J. Duncan

In 1977 plaintiff-appellee C.I.T. Corporation loaned a substantial sum of money to the defendant-appellant Duncan Grading and Construction, Inc. (Duncan). Defendants-appellants Lloyd K. Duncan, Inc., Lloyd K. Duncan and Betty J. Duncan guaranteed the loan. The loan was secured by a number of pieces of heavy equipment. In 1981 Duncan defaulted and C.I.T. repossessed the equipment and sold it. The proceeds were applied to Duncan’s debt, but, when interest and expenses were included, there was a deficiency. C.I.T. sued Duncan for the deficiency. Duncan defended on the grounds that the sale was…