2014 Commercial Law Developments, Prepared by the Commercial Transactions Committee for the Business Law Section 2014 Annual Report
III. Guaranties

  • Hawkins v. Community Bank of Raymore, 2014 U.S. App. Lexis 15006 (8th Cir. 2014), [petition for cert. granted, 2014] - Equal Credit Opportunity Act [applies to spousal guarantor].
  • Faunus Group International, Inc. v. Ramsoondar, 2014 U.S. Dist. LEXIS 67838 (S.D.N.Y. 2014) - A guaranty that does not include a waiver of defenses is subject to a claim of lack of consideration.
  • First Merit Bank, N.A. v. Frasca, 2014, U.S. Dist. LEXIS 55662 (N.D. Ill. 2014) - Evaluating language in limited guaranty.
  • TCFIF Inventory Finance, Inc. v. Appliance Distributors, Inc., 2014 U.S. Dist. LEXIS 26550 (N.D. Ill. 2014) -A guaranty contained two "term" limitations in a guaranty - one provided that the guaranty would not extend to liabilities incurred after a specific date and another that the guaranty term extended for ten years. The court concluded that these provisions were not in conflict. The court also concluded that consideration for the guaranty existed even where the guarantied obligation arose prior to the execution of the guaranty.
  • California Bank & Trust v Del Ponti, __ Cal.App.4th __ (2014) - Waiver of guarantor defenses must be specific.
  • Cooperative Centrale Raiffeisen Boerenleenbank, B.A. v. Navarro, 978 NYS2d 186 (NY Sup Ct App Div. 2014 - Waivers of guarantor defenses may be broadly stated.
  • JPMorgan Chase Bank v. Winget, 2015 WL 728060 (6th Cir. 2015) - Guaranty would not be reformed in absence of mistake of fact or scrivener's error.

IV. Fraudulent Transfers / Table of Contents