Matanuska Valley Bank, a Corporation v. Irene Arnold and Willard Davis, Individually, and as Copartners, Doing Business as Davis Construction Company

Appellant, plaintiff in the lower court, sued appellees, defendants in the lower court, to recover payment of three notes purported to have been executed on behalf of a partnership consisting of appellees, Mrs. Irene Arnold and Willard Davis, and signed by Willard Davis. We shall hereafter refer to the parties, as Mrs. Arnold, Davis, and the bank. Mrs. Arnold disclaimed liability on the notes and counterclaimed against the bank for alleged damages sustained by her because of an alleged breach of a deposit contract with the partnership. Judgments in her favor were rendered by the trial court by denying relief to the bank on its suit on the notes, and granting her relief on the counterclaim against the bank, D.C., 116 F.Supp. 32 .

Davis was engaged in the contracting business in Palmer, a small community in Alaska. He secured a contract from the United States to erect a garage and storage building. Being without sufficient funds to enable him to finance the project, he contacted Mrs. Arnold, whose credit at the bank was good, and induced her to enter into an agreement with him for the purpose of carrying out the contract. Mrs. Arnold was to secure the bond required by the contract…