Stone v. Commonwealth Finance Corp.

Headnote

Contract — guaranty — action to recover upon alleged contract of guaranty — complaint dismissed.

Stone v. Commonwealth Finance Corp., 215 App. Div. 704 , affirmed.

Appeal from a judgment of the Appellate Division of the Supreme Court 'in the first judicial department, entered February 11, 1926, which affirmed a judgment in favor of defendant entered upon an order of Special Term granting a motion by defendant for a dismissal of the amended complaint upon the ground that it failed to state facts sufficient to constitute a cause of action. The action is brought by the assignee of claimants against an

exposition company for damages arising out of failure of the company to establish and operate an exposition in accordance with its contracts with the claimants. Liability of defendant is predicated upon the following letter, whereby it was claimed defendant guaranteed performance by the exposition company of its obligations and obligated itself for the benefit of proposed exhibitors, to give financial support to the exposition company:

“ American National Expositions, Inc.,

Bush Terminal Building,

New York City, N. Y.

“ Gentlemen.— We are informed that you have had inquiries as to your financial backing and responsibility. We wish to state that this Exposition Company is owned and controlled by one of our subsidiary Companies, and that we are giving it our full co-operation and support, and are ready to place our resources behind this project to the extent that may be necessary to insure its complete success.

“We are doing this in the belief that the expansion of American trade to foreign markets, particularly to our sister republics in South and Central America, is of the greatest importance both to American Manufacturers and Latin-American consumers, and because we believe that a great and dignified Exposition such as is now in process of preparation will be a real influence in bringing such manufacturers and consumers together.

“ You are at liberty to use this information in such way

as you deem best. ((Tr , , J

((Tr , J very truly yours,

“ HENRY D. TUDOR,

“ Commonwealth Finance Corporation."

Judgment affirmed, with costs;