Citizens & Southern National Bank v. Yeager Enterprises, Inc.

The instant case is before this court by writ of certiorari. See C. & S. Nat. Bank v. Yeager Enterprises, 156 Ga. App. 341 (274 SE2d 730) (1980). We reverse.

Appellant C. & S. filed a complaint alleging an indebtedness on the part of Yeager Enterprises, Inc., maker of a note, and George Yeager, Erma Yeager and Gigi’s of DeLowe, Inc., guarantors of the note. Both Yeager Enterprises and the guarantors raised the defense of fraud.

The Yeagers are the sole officers and stockholders of Yeager *798Enterprises. It is undisputed that after certain notes and guarantees were executed, the Yeagers learned of…