Fidelity America Financial Corp. v. Litt (In Re Fidelity America Financial Corp.)

OPINION

EMIL F. GOLDHABER, Bankruptcy Judge:

The issue in the case at bench is whether the statute of limitations bars the debtor from prevailing on a suretyship contract which is ostensibly a sealed instrument. For the reasons stated herein we find the action is barred.

The facts of this case are as follows: 1 Sidney E. Litt (“Litt”) was the president and sole shareholder of American Educational Council, Inc. (“AEC”), on February 25, 1966, when Fidelity America Financial Corporation (“the debtor”) loaned funds to AEC under an accounts receivable financing contract. Litt and his wife, Lorraine…