Frishman v. Canadian Imperial Bank of Commerce

Canadian Imperial Bank of Commerce (plaintiff) loaned money to Abel Construction Co. under an agreement letting the bank call the loan at its own discretion, and demanded personal guarantees from Abel's four shareholders as security; three shareholders provided guarantees before the bank made the loan, and Bernard Frishman (defendant), the fourth shareholder, provided his guarantee only several days after the loan had already been made. When the bank later called the loan and Abel went bankrupt, the bank sued Frishman on his guarantee; the district court ruled for Frishman on the original loan amount but for the bank on a separate overdraft amount, and both sides appealed.