Ralston-Purina Company, a Corporation v. John P. Bertie and L. Irene Bertie, Husband and Wife

John and Irene Bertie appeal a judgment in a diversity action on an agreement guaranteeing a debt entered after a jury trial in the United States District Court for the District of Idaho, Fred Taylor, Judge. We find no error and affirm the judgment.

I.

In 1971 Ralston-Purina Company (“Purina”), a Missouri corporation, supplied feed-meal to Northwestern Poultry Growers (“Northwestern”), an Idaho corporation, which raised, processed, and sold poultry products. John Bertie was its manager and a stockholder. John and his wife Irene Bertie are residents of Idaho.

To ensure payment for the feed with which it agreed to supply Northwestern, Purina obtained a security agreement covering virtually all of the corporation’s non-real estate assets and a personal guaranty from the Berties promising payment of any liabilities to Purina incurred by Northwestern “to the extent of Ninety-five Thousand Dollars” and payment of any otherwise unreimbursed costs incurred by Purina in attempting to collect debts owed it by Northwestern.

On January 3, 1972, Northwestern filed a petition under Chapter XI and was later adjudicated bankrupt. The corporation was unable to pay $141,597.86 of its debt to…