Rouse v. United States
United States Court of Appeals for the District of Columbia Circuit
215 F.2d 872 (1954)
Rouse (defendant) bought Winston's home and agreed to assume payment of an $850 promissory note Winston owed Associated Contractors for a heating plant; the note was guaranteed by the FHA (plaintiff), which paid Winston's default and sued Rouse for the balance. Rouse raised two defenses: that Winston had fraudulently misrepresented the heating plant's condition, and that Associated Contractors had installed it improperly; the district court struck both defenses and granted the FHA summary judgment, and Rouse appealed.
Whether someone who assumes another's debt to a third party is liable to the third party only to the extent the assuming party is liable to the principal debtor.