L. D. Brinkman & Co. v. Binks Carpet Sales, Inc.
L. D. Brinkman & Co. v. Binks Carpet Sales, Inc.
Opinion of the Court
Plaintiff, L. D. Brinkman & Co., filed suit against the defendants, Binks Carpet Sales, Inc., and Binks A. Graval, for $15,437.54 past due on an open account. The liability of the corporation (now insolvent) for the debt is admitted. What is at issue is the personal liability of Graval.
Plaintiff bases its claim of individual liability on a personal guaranty executed by Graval in 1969 when it first extended credit to Binks Carpet Sales, an individual proprietorship. In July 1971, Graval discontinued this form of business operation and converted to a corporate entity, known as Binks Carpet Sales, Inc. It was stipulated that all the merchandise for which payment is claimed was delivered after Graval began operating his business as a corporation. The trial court, noting in its reasons for judgment a contract of personal guaranty must be strictly construed and cannot be expanded beyond its terms,
We affirm. Graval personally guaranteed the debts of Binks Carpet Sales in a document executed October 27, 1969.
Absent a finding of manifest error in the conclusion the plaintiff knowingly extended credit to Binks Carpet Sales, Inc., as a corporation, there is no basis for reversing the judgment.
For the reasons assigned, the judgment appealed from is affirmed; all costs to be borne by appellant.
Affirmed.
. Texaco, Inc. v. State Hot Mix Corporation, 276 So.2d 383 (La.App.2d Cir. 1973).
. The continuing guaranty agreement does not contain a provision that would extend the guarantor’s liability to the successor or assigns of Binks Carpet Sales.
Case-law data current through December 31, 2025. Source: CourtListener bulk data.