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Tag Archives: Guaranty

Civil Practice – Judgments – Corporate – Merger Doctrine — Guaranty – Consideration – Personal Jurisdiction (access required)

Sollis v. Holman After obtaining a Texas judgment against a no-asset Texas corporation, plaintiff cannot bring a North Carolina action to pierce the corporate veil in order to enforce the judgment against the Texas corporation’s owner, a Texas resident. We affirm summary judgment for defendant.

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Contract – Guaranty – Landlord/Tenant – Commercial Lease – Assignment – Default – Bankruptcy (access required)

Epes v. B.E. Waterhouse, LLC Where both the lease assignment and plaintiff’s guaranty reflect that the assignment would not release plaintiff from liability as guarantor, the trial court correctly granted summary judgment to the defendant-landlords on plaintiff’s request for a declaratory judgment that plaintiff “has no ongoing duties, obligations, or liability of any type to defendants under any agreement or under applicable law.”

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Contract – Guaranty – Lack of Consideration – Future Language – Corporate – Affiliated Companies (access required)

Procar II, Inc. v. Dennis Even though plaintiff continued to extend credit to Southeastern Material, Inc. after defendants agreed to personally guarantee Southeastern’s $611,500 debt, since the guaranty makes no mention of any future obligations - it refers only to the debt “due to and owing” - the guaranty did not apply to future extensions of credit. The guaranty was not supported by adequate consideration and is therefore unenforceable between the parties.

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Contract – Guaranty – Written Promise to Pay – Consideration – Forbearance (access required)

Klingstubbins Southeast, Inc. v. 301 Hillsborough Street Partners, LLC Letters from an LLC member to its creditor promised to pay the LLC’s debt. Combined with the creditor’s forbearance to sue, the letters allow the creditor’s claim of a guaranty to survive the LLC member’s motion to dismiss. We reverse the trial court’s grant of defendant Reynolds’ motion to dismiss.

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