Erickson (P) was an accountant and tax counselor. P performed professional services for Grande (D1) which subsequently entered into a contract with Stoddard Lumber Company (D). The D1-D agreement included a promise by D to discharge certain liabilities of D1 including the amount owed to P. P sued both D's on a past-due obligation. P obtained a judgment against D1 for less than what he wanted and D’s motion for nonsuit was sustained. P appealed, and the Supreme Court of Oregon affirmed the judgment as to D1 and reversed and remanded as to D. Ds petitioned for a rehearing.

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