Rouse v. United States

215 F.2d 872 (D.C. Cir. 1954)

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Nature of the Case

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Facts

Associated installed a heating plant for Winston. Winston paid with a promissory note guaranteed by the FHA (P) for $1,008.37, payable in monthly installments of $28.01. The house was sold to Rouse (D) who agreed to assume the payments on the heating plant. Nothing was said about the note. Winston defaulted on the note, and the Government (P) paid the bank and then sued D for payment. P was a third party beneficiary of the D-Winston contract. D defended; Winston fraudulently misrepresented the condition of the heating plant, and P's assignor did not install the heater properly. The court struck these defenses and issued summary judgment for P. D appealed.