MUTUAL SAVINGS LIFE INS. CO. v. MONTGOMERY

SC 1478.

347 So.2d 1327 (1977)

MUTUAL SAVINGS LIFE INS. CO. v. Mrs. E. B. MONTGOMERY et al.

Supreme Court of Alabama.

Rehearing Denied July 29, 1977.


Attorney(s) appearing for the Case

Norman W. Harris and William E. Shinn, Jr., Decatur, for appellant.

Harvey Elrod and Bingham D. Edwards, Decatur, for appellee.


FAULKNER, Justice.

This is an appeal from a judgment ordering a finance company to reimburse another company for paying an employee a $50,000 bonus. We affirm.

In 1952 Mutual Savings Life Insurance Company began lending money to Par Value by buying schedules of consumer paper at a discount from Par Value. Mutual's security for the line of credit to Par Value became seriously impaired in 1956. In an effort to forestall the failure of Par Value, with the attendant...

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