Dellcar & Co. v. Hicks

685 F. Supp. 679 (1988)

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Nature of the Case

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Facts

Continental Bearings owed its suppliers $200,000 which Treesdale Inc. could not adequately fund. Treesdale was the Continental's parent corporation. The president of Continental was Hicks (D), and he appealed to Treesdale, Inc. for money to cover the debt. Carson, the owner of Treesdale, did not have the monies but a limited partnership by the name of Dellcar (P) did. Carson was also Dellcar's general partner, and Carson had P send a promissory note and check for $20,000 payable to P from D personally. Before signing the note, Carson told D that P would never look to him for payment of the note and relying on this assurance D signed the note and endorsed the check. D got another $30,000 on the same conditions a month later with the same assurances of no personal liability to D given by Carson. P then demanded payment from D and D refused, and P sued D. P moved for summary judgment.