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
2015 Distinguished Barrister &
Up and Coming Lawyer Reception

Tuesday, May 5, 2015 • 4:30 - 7:00 pm
Learn More


ADVERTISEMENT
Subscribe to Indiana Lawyer
  1. A traditional parade of attorneys? Really Evansville? Y'all need to get out more. When is the traditional parade of notaries? Nurses? Sanitation workers? Pole dancers? I gotta wonder, do throngs of admiring citizens gather to laud these marching servants of the constitution? "Show us your billing records!!!" Hoping some video gets posted. Ours is not a narcissistic profession by any chance, is it? Nah .....

  2. My previous comment not an aside at court. I agree with smith. Good call. Just thought posting here a bit on the if it bleeds it leads side. Most attorneys need to think of last lines of story above.

  3. Hello everyone I'm Gina and I'm here for the exact same thing you are. I have the wonderful joy of waking up every morning to my heart being pulled out and sheer terror of what DCS is going to Throw at me and my family today.Let me start from the !bebeginning.My daughter lost all rights to her 3beautiful children due to Severe mental issues she no longer lives in our state and has cut all ties.DCS led her to belive that once she done signed over her right the babies would be with their family. We have faught screamed begged and anything else we could possibly due I hired a lawyer five grand down the drain.You know all I want is my babies home.I've done everything they have even asked me to do.Now their saying I can't see my grandchildren cause I'M on a prescription for paipain.I have a very rare blood disease it causes cellulitis a form of blood poisoning to stay dormant in my tissues and nervous system it also causes a ,blood clotting disorder.even with the two blood thinners I'm on I still Continue to develop them them also.DCS knows about my illness and still they refuse to let me see my grandchildren. I Love and miss them so much Please can anyone help Us my grandchildren and I they should be worrying about what toy there going to play with but instead there worrying about if there ever coming home again.THANK YOU DCS FOR ALL YOU'VE DONE. ( And if anyone at all has any ideals or knows who can help. Please contact (765)960~5096.only serious callers

  4. He must be a Rethuglican, for if from the other side of the aisle such acts would be merely personal and thus not something that attaches to his professional life. AND ... gotta love this ... oh, and on top of talking dirty on the phone, he also, as an aside, guess we should mention, might be important, not sure, but .... "In addition to these allegations, Keaton was accused of failing to file an appeal after he collected advance payment from a client seeking to challenge a ruling that the client repay benefits because of unreported income." rimshot

  5. I am not a fan of some of the 8.4 discipline we have seen for private conduct-- but this was so egregious and abusive and had so many points of bad conduct relates to the law and the lawyer's status as a lawyer that it is clearly a proper and just disbarment. A truly despicable account of bad acts showing unfit character to practice law. I applaud the outcome.

ADVERTISEMENT