ILNews

Law clear only guarantor's signature needed

Back to TopE-mailPrintBookmark and Share

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.

ADVERTISEMENT

Sponsored by
ADVERTISEMENT
Subscribe to Indiana Lawyer
  1. @BryanJBrown, You are totally correct. I have no words, you nailed it.....

  2. You have not overstated the reality of the present situation. The government inquisitor in my case, who demanded that I, on the record, to choose between obedience to God's law or man's law, remains on the BLE, even an officer of the BLE, and was recently renewed in her contract for another four years. She has a long history in advancing LGBQT rights. http://www.realjock.com/article/1071 THINK WITH ME: What if a currently serving BLE officer or analogous court official (ie discplinary officer) asked an atheist to affirm the Existence, or demanded a transsexual to undergo a mental evaluation to probe his/her alleged mindcrime? That would end a career. The double standard is glaring, see the troubling question used to ban me for life from the Ind bar right here: https://www.scribd.com/doc/312841269/Thomas-More-Society-Amicus-Brown-v-Ind-Bd-of-Law-Examiners (see page 8 of 21) Again, what if I had been a homosexual rights activist before law school rather than a prolife activist? A gay rights activist after law school admitted to the SCOTUS and Kansas since 1996, without discipline? A homosexual rights activist who had argued before half the federal appellate courts in the country? I am pretty certain that had I been that LGBQT activist, and not a pro-life activist, my passing of the Indiana bar exam would have rendered me an Indiana attorney .... rather than forever banished. So yes, there is a glaring double standard. And some are even beyond the reach of constitutional and statutory protections. I was.

  3. Historically speaking pagans devalue children and worship animals. How close are we? Consider the ruling above plus today's tidbit from the politically correct high Court: http://indianacourts.us/times/2016/12/are-you-asking-the-right-questions-intimate-partner-violence-and-pet-abuse/

  4. The father is a convicted of spousal abuse. 2 restaining orders been put on him, never made any difference the whole time she was there. The time he choked the mother she dropped the baby the police were called. That was the only time he was taken away. The mother was suppose to have been notified when he was released no call was ever made. He made his way back, kicked the door open and terrified the mother. She ran down the hallway and locked herself and the baby in the bathroom called 911. The police came and said there was nothing they could do (the policeman was a old friend from highschool, good ole boy thing).They told her he could burn the place down as long as she wasn't in it.The mother got another resataining order, the judge told her if you were my daughter I would tell you to leave. So she did. He told her "If you ever leave me I will make your life hell, you don't know who your f!@#$%^ with". The fathers other 2 grown children from his 1st exwife havent spoke 1 word to him in almost 15yrs not 1 word.This is what will be a forsure nightmare for this little girl who is in the hands of pillar of the community. Totally corrupt system. Where I come from I would be in jail not only for that but non payment of child support. Unbelievably pitiful...

  5. dsm 5 indicates that a lot of kids with gender dysphoria grow out of it. so is it really a good idea to encourage gender reassignment? Perhaps that should wait for the age of majority. I don't question the compassionate motives of many of the trans-advocates, but I do question their wisdom. Likewise, they should not question the compassion of those whose potty policies differ. too often, any opposition to the official GLBT agenda is instantly denounced as "homophobia" etc.

ADVERTISEMENT