Gulfstar, Inc. v. Borg-Warner Acceptance Corp.

Gulfstar, Inc., and others (appellants) appeal a final judgment entered upon a jury verdict assessing damages of $257,323.54 for breach of a contract of guaranty.

Gulfstar is a boat manufacturer that was selling boats to Underwood Marine. Borg-Warner loaned Underwood money to pay Gulfstar, who guaranteed the repayments by Underwood to Borg-Warner. Five boats were sold by Underwood “out-of-trust”1, *455who received the proceeds from the sales and did not pay Borg-Warner. Borg-Warner sued Gulfstar on its guaranty for these amounts.

The financing agreement contained specific previsions regarding…