Ries Biologicals, Inc. v. Bank Of Santa Fe

780 F.2d 888 (1986)

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Nature of the Case

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Facts

Ries Biologicals (P) began selling medical supplies to Dialysis Management Systems, Inc. (DMS), which was having financial problems and accumulated a large debt to P. Eventually, P refused to ship to DMS except for cash on delivery, but resumed shipping on credit when the Bank of Santa Fe (D) orally agreed to guarantee payment. P was never fully paid and sued D to recover. At trial, the court admitted the statement of D's senior vice president guaranteeing payment. On appeal, D argues that these statements were hearsay and should not have been admitted.