Howard Bank v. Lotus-Duvet Co.

Defendant James Garland appeals a superior court judgment of $49,987 in favor of plaintiff, The Howard Bank. The judgment represents the balance due on two loans the bank made to defendant’s company, Lotus-Duvet Co., Inc., before he purchased it in 1985. Defendant argues he was not liable for the debt and that the bank should not have been allowed to proceed against him under the rights of the company’s former owners. We affirm.

The dispute arose as follows. In 1983 and 1984, the bank made two loans totalling $200,000 to Lotus-Duvet. The loans were guaranteed by the company’s owners, Leighton…