Key v. Cascade Packing, Inc.

Defendant Clyde Hovik became the president and major stockholder of defendant Cascade Packing, Inc. (hereafter Cascade) late in 1976. Plaintiffs Key and Morrison entered into cattle-purchase arrangements with Cascade whereby Cascade would have the use of the plaintiffs' money. When the plaintiffs became apprehensive about Cascade's ability to reimburse them, they sought a personal guaranty from defendant Clyde Hovik. They presented a guaranty form to Elmer Hovik, the defendant's son, and asked that Clyde sign it. Instead, Clyde sent each of the plaintiffs the following, beneath Cascade's…