Federal Deposit Insurance v. Manion

Federal Deposit Insurance Corporation (FDIC), an appointed receiver of the American Bank and Trust Co. (Bank), brought this diversity contract action against Christian Zillig and the other defendants, claiming in part that Zillig was a continuing guarantor on a Mortgage Note executed by Relocation Development Corp. (“Relo”) in favor of the Bank and later extended for one year pursuant to an extension agreement between Relo and the Bank. The district court1 on mutual motions for summary judgment ruled that Zillig could not be held as a guarantor on the extended Mortgage Note because the…