VANGUARD CONST. CO. v. Lewis State Bank
Court of Appeals for the First Circuit · 1977-07-22 · cited 7×
This case involved Vanguard Construction Company and three of its officers appealing a deficiency judgment obtained by the Lewis State Bank after foreclosure on land mortgaged to secure the company's debt, which the officers had endorsed. The trial court awarded the bank a deficiency against the company for the difference between the debt and the land's market value at foreclosure, with interest at contract rates, and against the individuals for the principal amount at 10 percent interest. The appeals court affirmed, holding that the individual endorsers were not discharged by a later extension agreement increasing interest from 11 to 15 percent because they had requested the extension and their consent could be implied from the circumstances, despite not signing it personally. The court also ruled that the deficiency was not inequitable, as the bank's pre-loan appraisal did not prevent it from proving a lower market value, and the trial court had properly weighed relevant equitable factors.