Logourl black
From our private database of 14,200+ case briefs...

In the Matter of Drive-In Development Corp.

Seventh Circuit Court of Appeals
371 F.2d 215 (1966)


Facts

Officers of Drive In Development Corporation (debtor) issued a guaranty of payment to National Boulevard Bank of Chicago (creditor) in exchange for a loan. Leo Maranz signed the guaranty as Chairman of Drive In. George Dick, Drive In’s Secretary, attested to the guaranty. As part of his secretarial duties, Dick made records of board resolutions and attested to guaranties. Dick presented to the bank a certified copy of a purported resolution of Drive In’s board of directors authorizing Maranz to issue the guaranty. However, no such resolution was ever passed by the board. Drive In filed for chapter 11 bankruptcy, and the bank filed a claim. The referee disallowed the bank’s claim, finding that Maranz had no authority to bind Drive In to the guaranty. The district court affirmed. The bank appealed.

Rule of Law

Issue

Holding and Reasoning (Swygert, 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 97,000 law students since 2011. Some law schools—such as Yale, Vanderbilt, Berkeley, and the University of Illinois—even subscribe directly to Quimbee for all their law students. Read our student testimonials.

  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. Read more about Quimbee.

Here's why 239,000 law students have relied on our case briefs:

  • Written by law professors and practitioners, not other law students. 14,200 briefs, keyed to 189 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.