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Contracts Keyed to Burton
Rouse v. United States
Citation:
94 U.S. App. D.C. 386, 215 F.2d 872Facts
Bessie Winston sold her house to Rouse (defendant), who assumed debts secured by the deed of trust and payment for the heating plant in the house. No mention was made during the sale about Winston’s promissory note to Associated Contractors, Inc., the company who installed the heating plant. The note itself was guaranteed by the the Federal Housing Administration (plaintiff). Winston later defaulted on the note. The Federal Housing Administration demanded payment from Rouse and sued him for $850 plus interest. Rouse asserted two defenses: (1) that Winston fraudulently misrepresented the condition of the heating plant; and (2) that the heating plant was not installed satisfactorily. The trial court struck both of Rouse’s defenses and granted summary judgment in favor of the Fair Housing Administration. Rouse appealed.
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