Citizens Finance Company of Amite v. Buchanan

TATE, Justice.

The plaintiff finance company sues for the unpaid balance of a promissory note evidencing a loan to the defendant, Charles Buchanan. Buchanan defends on the ground that the finance company negligently failed to obtain disability insurance, which would have paid the note when he became disabled.

The trial and intermediate courts rejected this defense. 248 So.2d 72 (La.App.1st Cir.1971). They did so because the plaintiff finance company had taken out the disability insurance on the defendant’s mother (Jessye), an endorser or accommodation maker of the note, instead of on the…