Cook v. Crabtree

OPINION

FONES, Justice.

The controlling issue in this litigation is whether defendant Starling Davis, one of six sureties who guaranteed payment by a corporate debtor of a bank loan, was a cosurety liable for contribution to plaintiffs, who paid the bank, or a subsurety with no obligation to contribute.

On 27 July 1981, Cambridge Investment Corporation [CIC] was chartered for the purpose of forming a travel agency, Travel Unlimited. David Crabtree, D. Wiley Cook and his brother, Sam Cook, III, agreed to invest in CIC; and each contributed $3,333.33 to the corporation’s initial capitalization.…