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Rouse v. United States
United States Court of Appeals for the District of Columbia Circuit
215 F.2d 872 (1954)
Bessie Winston sold her home to John W. Rouse (defendant). In connection with the sale, Rouse agreed “to assume payment of $850” for a heating plant that Winston purchased from Associated Contractors, Inc. At the time Winston purchased the plant, she gave Associated Contractors a promissory note for its cost. The note was guaranteed by the Federal Housing Administration (FHA) (plaintiff). Winston defaulted on the note, which the FHA then paid. The note was assigned to the FHA, which sued Rouse for $850 plus interest. As defenses to the lawsuit, Rouse alleged (1) that Winston had fraudulently misrepresented the heating plant’s condition and (2) that Associated Contractors had installed it incorrectly. The district court struck Rouse’s defenses and granted summary judgment to the FHA. Rouse appealed.
Rule of Law
Holding and Reasoning (Edgerton, J.)
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