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Ries Biologicals, Inc. v. Bank of Santa Fe

United States Court of Appeals for the Tenth Circuit
780 F.2d 888 (10th Cir. 1986)


Ries Biologicals (Ries) (plaintiff) regularly sold medical supplies to Dialysis Management Systems, Inc. (DMS). DMS began experiencing financial issues and stopped paying Ries so Ries stopped their regular shipments. Subsequently, Ries restarted shipments on credit because of reliance on an oral statement made by the Bank of Santa Fe (Bank) (defendant), guaranteeing payment for future orders by DMS. After the Bank failed to pay Ries, Ries brought suit and sought to admit into evidence the oral guarantee to pay made on behalf of the Bank by its senior vice president, Philip Levitt. The trial court admitted this evidence. The Bank appealed.

Rule of Law


Holding and Reasoning (Crow, J.)

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