FDIC v. Providence College

115 F.3d 136 (1997)

From our private database of 46,300+ case briefs, written and edited by humans—never with AI.

FDIC v. Providence College

United States Court of Appeals for the Second Circuit
115 F.3d 136 (1997)

Facts

Providence College (defendant) was a private college in Rhode Island. The college began a major construction project to remove asbestos from its buildings. The college selected two construction companies (defendants) with the lowest bids to perform the work. The construction companies sought several loans from Crossland Savings Bank (plaintiff) to finance the asbestos project. Before issuing the loans, Crossland required a written loan guaranty from the college. Joseph Byron, Vice President for Business Affairs for the college, signed the loan guaranty on behalf of the college. Crossland and the college had little contact, but Crossland was aware of Byron’s title as vice president for business affairs. Crossland made no other attempt to determine whether Byron had the appropriate authority to guarantee the loans on behalf of the college. A loan guaranty of this nature was not a typical transaction for private colleges such as Providence College, and no evidence that Providence College had ever guaranteed a loan for a construction company before this transaction existed. Crossland filed a lawsuit against the college, the construction companies, and others, seeking to recover on the loan and the college’s guaranty of the loan. The college argued that Byron had no actual or apparent authority to bind the college. The district court ruled that Byron had apparent authority to guaranty the loan on behalf of the college and entered a judgment against the college. The college appealed.

Rule of Law

Issue

Holding and Reasoning (Jacobs, J.)

What to do next…

  1. Unlock this case brief with a free (no-commitment) trial membership of Quimbee.

    You’ll be in good company: Quimbee is one of the most widely used and trusted sites for law students, serving more than 815,000 law students since 2011. Some law schools even subscribe directly to Quimbee for all their law students.

  2. Learn more about Quimbee’s unique (and proven) approach to achieving great grades at law school.

    Quimbee is a company hell-bent on one thing: helping you get an “A” in every course you take in law school, so you can graduate at the top of your class and get a high-paying law job. We’re not just a study aid for law students; we’re the study aid for law students.

Here's why 815,000 law students have relied on our case briefs:

  • Written by law professors and practitioners, not other law students. 46,300 briefs, keyed to 988 casebooks. Top-notch customer support.
  • The right amount of information, includes the facts, issues, rule of law, holding and reasoning, and any concurrences and dissents.
  • Access in your classes, works on your mobile and tablet. Massive library of related video lessons and high quality multiple-choice questions.
  • Easy to use, uniform format for every case brief. Written in plain English, not in legalese. Our briefs summarize and simplify; they don’t just repeat the court’s language.

Access this case brief for FREE

With a 7-day free trial membership
Here's why 815,000 law students have relied on our case briefs:
  • Reliable - written by law professors and practitioners, not other law students
  • The right length and amount of information - includes the facts, issue, rule of law, holding and reasoning, and any concurrences and dissents
  • Access in your class - works on your mobile and tablet
  • 46,300 briefs - keyed to 988 casebooks
  • Uniform format for every case brief
  • Written in plain English - not in legalese and not just repeating the court's language
  • Massive library of related video lessons - and practice questions
  • Top-notch customer support

Access this case brief for FREE

With a 7-day free trial membership