United States v. Flasher Co. of Texas, Civ. A. No. 75-C-40.
| Decision Date | 15 November 1977 |
| Docket Number | Civ. A. No. 75-C-40. |
| Parties | UNITED STATES of America v. The FLASHER COMPANY OF TEXAS and Norman Ransleben. |
| Court | U.S. District Court — Southern District of Texas |
Helen M. Eversberg, Asst. U. S. Atty., Houston, Tex., for United States of America.
Lee Mahoney, Mahoney, Shaffer, Hatch & Layton, Corpus Christi, Tex., for The Flasher Company of Texas and Norman Ransleben.
This is an action by the United States for and on behalf of the Small Business Administration (SBA) against The Flasher Company of Texas and Norman Ransleben for the collection of a note executed by The Flasher Company and guaranteed by Norman Ransleben. The complaint alleges an amount due of $152,626.56 plus interest.
The Plaintiff alleges that on October 23, 1967, the Defendant Flasher Company of Texas executed a promissory note payable to the Small Business Administration for the principal sum of $150,000. The note was payable in monthly installments of $843.00, with the balance of interest and principal due at the end of ten years from the date of the note. The note contained a provision whereby, at the option of the holder, the entire amount would become due and payable in the event that any payments were not made when due.
On October 23, 1967, the Defendant Norman Ransleben, for valuable consideration, executed a guaranty agreement wherein he made an unconditional guarantee of the punctual payment of said note.
The Plaintiff has made demand of payment on both parties and both have failed and refused to pay. There is now due $152,626.56 plus interest from November 21, 1974.
The Defendant The Flasher Company of Texas, apparently a defunct corporation, has never answered the complaint, although it was served on September 12, 1975. No motion for default judgment has been filed.
The Defendant Norman Ransleben admits the above facts as true but alleges that he was released from the guaranty agreement by the SBA because the SBA released collateral given as security for the payment of the note without his consent, approval, or knowledge.
On September 20, 1977, the Plaintiff filed its motion for summary judgment in accordance with Rule 56 of the Federal Rules of Civil Procedure. For the reasons stated herein, Plaintiff's motion is granted.
The Defendant Norman Ransleben has admitted that he executed the guaranty agreement. He also admits that the note is past due and unpaid. The only issue to be resolved is whether or not the SBA's failure to protect the collateral given by the principal obligor constitutes a release by the SBA of Ransleben's obligation.
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