Contracts Keyed to Dawson
Rouse v. United States
Facts
Associated Contractors, Inc. ("Associated"), installed a heating plant in Bessie Winston's ("Ms. Winston") house. Ms. Winston gave Associated a promissory note in the amount of $1,008.37 as payment for the heating plant. Ms. Winston was required to pay $28.01 per month. The Federal Housing Authority (the "FHA") represented by the Plaintiff, the United States (the "Plaintiff"), guaranteed the note and Associated endorsed it to the lending bank. Ms. Winston sold her home to the Defendant, Rouse (the "Defendant"). The Defendant assumed the remaining payment of $850 for the heating plant. There was no reference to the note. Ms. Winston defaulted on the note. The Plaintiff paid the bank, took an assignment of the note. Subsequently, the Plaintiff sued the Defendant for $850 plus interest. The Defendant alleged that Ms. Winston fraudulently represented to him the condition of the heating plant and that Associated failed to install the heating plant properly. The district court granted summary judgment to the Plaintiff and the Defendant appealed.
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