News & Analysis as of

Guarantors Contract Disputes

King & Spalding

New York Appellate Court Reverses Denial of Bank’s Summary Judgment Motion for Amounts Owed Under Cancelled Credit Agreement

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On November 26, 2025, the New York Appellate Division, Second Department reversed a trial court order denying Plaintiff Citibank, N.A.’s motion for summary judgment for breach of contract, breach of a personal guaranty, and...more

King & Spalding

Southern District of New York Rules That Lender’s Alleged Bad-Faith Failure to Engage with Borrowers’ Proposed Collateral Sales...

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On December 16, 2025, the U.S. District Court for the Southern District of New York granted summary judgment on liability in favor of lender Jasper Lake Ventures Two LLC, holding that its alleged refusal to engage with...more

Patton Sullivan Brodehl LLP

The “Sham Guaranty” Defense is Not Easy to Establish

Under California anti-deficiency law, borrowers enjoy robust protections.  Guarantors — not so much.  The statutory protections afforded to borrowers cannot be waived, while for guarantors, they can be (and almost always are)...more

Tannenbaum Helpern

New York Court of Appeals Rules on Good Guy Guaranty; Highlights the Need for Precision in Drafting Commercial Agreements

Tannenbaum Helpern on

On October 21, 2025, in 1995 CAM LLC v. West Side Advisors, LLC, the New York Court of Appeals delivered a ruling concerning a guarantor’s liability under a “good guy” guaranty....more

King & Spalding

New York Appellate Court Rejects Defendants’ Argument That Revenue Purchase Agreement Was Usurious Loan

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On July 25, 2025, a New York intermediate appellate court reversed a grant of summary judgment in plaintiff’s favor on its breach of contract and related breach of guaranty claims, concluding that while the agreement was a...more

King & Spalding

Southern District of Mississippi Rejects Argument That Broad Waiver Provisions in Guaranty Agreements Are Unconscionable

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On September 16, 2025, the U.S. District Court for the Southern District of Mississippi declined to dismiss a claim for breach of guaranty agreements, rejecting the defendants’ argument that the contracts are “so...more

King & Spalding

Ohio Supreme Court Says Creditors Do Not Have an Affirmative Duty to Disclose Facts That Materially Increase Risk to a Surety

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On August 20, 2025, the Ohio Supreme Court clarified the obligations of lenders and guarantors in arm’s-length financial transactions and declined to adopt the obligations set out by Section 124(1) of the Restatement (First)...more

Cole Schotz

Welcomed Clarity for New York Commercial Landlords and Tenants: Court of Appeals Rules on “Good-Guy” Guaranties

Cole Schotz on

The New York Court of Appeals’ recent decision in 1995 CAM LLC v. West Side Advisors LLC provides long-awaited guidance on how so-called “good-guy” guaranties operate in commercial leasing. The question in this case was...more

Lathrop GPM

New Jersey Federal Court Grants Licensor’s Motion for Partial Summary Judgment and Finds Licensee and Guarantors Liable for...

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In Days Inns Worldwide, Inc. v. 4200 Rose Hospitality LLC, 2025 WL 2450755 (D.N.J. Aug. 25, 2025), Days Inns brought claims for contractual indemnification pursuant to a license agreement, common law/equitable...more

Brownstein Hyatt Farber Schreck

Colorado Court of Appeals Expands Fee Recovery Rights in Lease Enforcement Disputes

The Colorado Court of Appeals recently clarified the scope of contractual fee-shifting provisions in lease agreements in an opinion, which may have broader implications for businesses with lease agreements or other similar...more

Kohrman Jackson & Krantz LLP

Ohio Supreme Court Clarifies No Duty of Disclosure in Guaranty Agreements

In August 2025, the Supreme Court of Ohio issued its decision in Huntington National Bank v. Schneider providing important guidance on the obligations of lenders in guaranty and suretyship relationships. The Court rejected...more

Bricker Graydon Wyatt LLP

Lenders Rejoice - Ohio Supreme Court Saves The Day On Guaranties

In 2024, we alerted you to a decision out of the First Appellate District of Ohio (The Huntington National Bank v. Schneider, C-230072 (December 29, 2023)), where the Court was asked to review a grant of summary judgment in...more

Vorys, Sater, Seymour and Pease LLP

Ohio Supreme Court Ruling Clarifies Whether Banks Owe a Duty to Loan Guarantors

The Ohio Supreme Court overturned the First Appellate District’s ruling in Huntington National Bank v. Schneider (Case No. 2024-0208), clarifying when banks must disclose material information to loan guarantors. In a case...more

Walkers

Privy Council clarifies secured party’s duty when realising security

Walkers on

The Privy Council has clarified that the duty of care to "obtain the best price reasonably obtainable" in the sale of secured collateral does not require a secured party to improve an asset before sale to obtain the best...more

Farrell Fritz, P.C.

When Additional Obligations Don’t Derail CPLR 3213: Commercial Division Clarifies the Test

Farrell Fritz, P.C. on

Commercial loan documents are notoriously complex, packed with financial reporting requirements, compliance covenants, and collateral maintenance obligations.  For practitioners seeking the expedited relief of CPLR 3213’s...more

Offit Kurman

Eviction Essentials and Lease Management

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In this episode of Litigators Lounge, hosts Anders Sleight and Niall McMillan discuss the current challenges in the commercial real estate market. They explore essential steps for landlords and property managers to protect...more

Holland & Knight LLP

Commercial Leases: Right to Jury Trial Waived or Not Waived? That Was the Question

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If a commercial lease guaranty contains a jury trial waiver but the lease does not, is the jury trial waived for all parties (i.e., tenant and guarantor) or just the guarantor? In a recent case, Pierre's Caribbean Cuisine LLC...more

Lathrop GPM

New Jersey Federal Court Grants Summary Judgment Against Hotel Franchise Agreement Guarantor Enforcing Liquidated Damages...

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A federal court in New Jersey recently granted summary judgment against the guarantor of a hotel franchise agreement, requiring him to pay contractual post-termination damages. Ramada Worldwide Inc. v. Keys Hosp., LLC, 2024...more

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