Hamada v. Valley National Bank

OPINION

HOWARD, Chief Judge.

This is an appeal from a summary judgment awarding appellee $50,000.

The facts show that two individuals, Mr. Peterson and Mr. Steven Carr, formed a Utah corporation called Planformation, Inc. On October 5, 1970, Norman E. Smith, a commercial loan officer at the Valley National Bank approved a $5,000 loan to Planformation secured by some corporate accounts receivable. Mr. and Mrs. Peterson pledged to the bank 253,000 shares of stock in a corporation called Pilot Titanium. He also furnished the bank with a financial statement which showed the value of the pledged…