United American Life Insurance Company, a Colorado Corporation v. F. J. Perillo and Ruth E. Perillo, Husband and Wife

This is an appeal from an order of the district court awarding the plaintiff a money judgment. The district court had jurisdiction of the action under 28 U.S.C. § 1332 (Diversity of Citizenship), the action being between the plaintiff, a citizen of Colorado, and the defendants, citizens of states other than Colorado, and involving a sum exceeding $10,000. This court has jurisdiction of the appeal under 28 U.S.C. § 1291 .

FACTS

In 1961, Mr. and Mrs. F. J. Perillo (Perillos) owned a parcel of land in Tucson, Arizona, which they decided could profitably be used as the site for a bowling alley. Toward that end they formed an Arizona corporation, Diamond Pin Lanes, Inc. (Diamond), acquiring all of the stock in that corporation by conveying all of their interest in the realty to the corporation in exchange for it. Mr. Perillo became president of the corporation and his wife became its secretary.

In return for a loan from the plaintiff, United American Life Insurance Company (United), for construction of improvements, Diamond and the Perillos executed and delivered a promissory note to United in the amount of $260,000. To secure the note, Diamond simultaneously executed and delivered…