ILNews

Law clear only guarantor's signature needed

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The Indiana Court of Appeals ruled on a guaranty issue today that is "so well-settled" in state law that the judges had difficulty finding recent cases restating it.

Debra Sullivan argued in Grabill Cabinet Co. Inc. v. Debra C. Sullivan, No. 02A03-0908-CV-399, that because Grabill Cabinet Co. didn't also sign a personal guaranty Sullivan had with the company, the guaranty was invalid. Sullivan signed the personal guaranty while she was an employee with Kitchens, Baths, & More, which guaranteed any repayment of debt KBM may have with the cabinet company. When KBM didn't pay on a balance, Grabill tried to collect from Sullivan. Sullivan had since left the company but didn't send Grabill any notice of termination of her personal guaranty.

The trial court granted summary judgment for Sullivan on the issue of enforceability of the guaranty.

The appellate judges disagreed with Sullivan's argument because the Indiana Statute of Frauds requires only that the party against whom the action is brought has to sign the written guaranty.

"Indeed, this seems to be one of those propositions so well-settled in Indiana law that it is difficult to find recent cases restating it," wrote Judge Cale Bradford. "Our Statute of Frauds has existed in substantially the same form, at least as it pertains to guaranties, for well over a century."

There is somewhat of a conflict between Indiana caselaw and the Statute of Frauds, and Sullivan relied on a ruling that required three parties to "execute" a guaranty for it to be valid. But signing a written guaranty isn't necessary for it to be executed and the Statute of Frauds has made it clear only the guarantor's signature is required.

The three Court of Appeals opinions that arguably define a signing requirement onto guaranties conflict with the plain language of the Statute of Frauds and Indiana Supreme Court precedent, the judge continued.

"If the Indiana Supreme Court wishes to graft new signing requirements onto guaranties beyond those mentioned in the Statute of Frauds, it may do so. As yet, however, the Court has not, and we are absolutely bound by its decisions in this regard," Judge Bradford wrote.

The appellate court reversed summary judgment for Sullivan and remanded for entry of summary judgment for Grabill on the issue and for calculation of the company's award.

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  1. My mother got temporary guardianship of my children in 2012. my husband and I got divorced 2015 the judge ordered me to have full custody of all my children. Does this mean the temporary guardianship is over? I'm confused because my divorce papers say I have custody and he gets visits and i get to claim the kids every year on my taxes. So just wondered since I have in black and white that I have custody if I can go get my kids from my moms and not go to jail?

  2. Someone off their meds? C'mon John, it is called the politics of Empire. Get with the program, will ya? How can we build one world under secularist ideals without breaking a few eggs? Of course, once it is fully built, is the American public who will feel the deadly grip of the velvet glove. One cannot lay down with dogs without getting fleas. The cup of wrath is nearly full, John Smith, nearly full. Oops, there I go, almost sounding as alarmist as Smith. Guess he and I both need to listen to this again: https://www.youtube.com/watch?v=CRnQ65J02XA

  3. Charles Rice was one of the greatest of the so-called great generation in America. I was privileged to count him among my mentors. He stood firm for Christ and Christ's Church in the Spirit of Thomas More, always quick to be a good servant of the King, but always God's first. I had Rice come speak to 700 in Fort Wayne as Obama took office. Rice was concerned that this rise of aggressive secularism and militant Islam were dual threats to Christendom,er, please forgive, I meant to say "Western Civilization". RIP Charlie. You are safe at home.

  4. It's a big fat black mark against the US that they radicalized a lot of these Afghan jihadis in the 80s to fight the soviets and then when they predictably got around to biting the hand that fed them, the US had to invade their homelands, install a bunch of corrupt drug kingpins and kleptocrats, take these guys and torture the hell out of them. Why for example did the US have to sodomize them? Dubya said "they hate us for our freedoms!" Here, try some of that freedom whether you like it or not!!! Now they got even more reasons to hate us-- lets just keep bombing the crap out of their populations, installing more puppet regimes, arming one faction against another, etc etc etc.... the US is becoming a monster. No wonder they hate us. Here's my modest recommendation. How about we follow "Just War" theory in the future. St Augustine had it right. How about we treat these obvious prisoners of war according to the Geneva convention instead of torturing them in sadistic and perverted ways.

  5. As usual, John is "spot-on." The subtle but poignant points he makes are numerous and warrant reflection by mediators and users. Oh but were it so simple.

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