734-359-7018
Now Accepting New Clients!
Blog

Language of personal guaranty on construction project ambiguous as to date guaranty is effective

Holding that the Guaranty was ambiguous, the court affirmed the trial court's rulings that Sable (a plaintiff in one of these consolidated appeals and a defendant in the other) was personally liable for the amount of the Promissory Note and sums due under the SA accruing on or after 7/30/07. However, it reversed the trial court's damage findings as to that sum and, on remand, directed the trial court to recalculate damages so as to include contractual interest accruing after 7/30/07. It also reversed the trial court's ruling that the Guaranty's unambiguous language provided that Sable was not personally liable for sums accruing under the SA before 7/30/07, and remanded for further proceedings on that issue. The case arose out of construction projects and contracts between Stonecrest (also a plaintiff in one of the cases and a defendant in the other) and nonparty-Stock. As part of its settlement with Stock, CTIC (the defendant in one of the cases and the plaintiff in the other) was assigned all of Stock's claims against Sable and Stonecrest. CTIC argued that the Guaranty's clear and unambiguous language provided that Sable assumed personal liability for all sums owed by Stonecrest to Stock under the SA, including all debts incurred before 7/30/07. The trial court disagreed, essentially finding that the Guaranty unambiguously provided that Sable only assumed personal liability for the amounts that came due on or after 7/30/07. However, the court held that the Guaranty was ambiguous and, thus, reversed and remanded. Sable did not dispute the Guaranty's validity or his personal liability thereunder. There was no question that he "clearly expressed" his intent to "assume some personal liability under the Guaranty." He did not dispute that he was personally liable for the amount of the Promissory Note and the sums due under the SA accruing on and after 7/30/07. Thus, the question before the court was whether Sable assumed personal liability for those debts incurred under the SA before 7/30/07. The parties each contended that "the Guaranty unambiguously evidences their advocated interpretation." The court found that, particularly in light of the special nature of a guaranty contract, each party presented a reasonable reading of the Guaranty. Thus, the court held that the document was ambiguous as to the scope of Sable's personal liability; "specifically, if that liability extends to all sums owed or only those that came due on or after" 7/30/07. The trial court's grant of summary disposition was inappropriate. Further, on remand, in determining the amount of damages payable by Sable for "sums payable by Stonecrest" after 7/30/07, "the trial court shall calculate and include the amount of interest incurred after that date for principal debts incurred prior to that date." Affirmed in part, and reversed and remanded in part.

Basic responsibilities of an executor

Originally posted on 01/11/2017 The emotional toils of dealing with the death of a loved one can be considerably difficult. Nevertheless, perseverance is paramount; especially if you are appointed to be an executor to one’s...

What you need to compliment your will

Originally posted on 02/08/2017 Making end-of-life plans usually end with a will, but they shouldn't. Some believe that simply having a will is enough. However, this post will briefly explain how having other estate planning...

The benefits of home health care providers

Originally posted on 03/22/2017 As we get older or suffer an injury, we need a little extra help. Home health care providers or caregivers can provide the assistance needed to handle your or your loved one's health and safety...

What to know about bail conditions

Originally posted on 03/06/2017 If you have been arrested and are being held on the suspicion that you have committed a particular crime, chances are that the only thing you are thinking about is getting out of jail as soon as possible and...

College students and estate planning

Originally posted on 12/16/2016 With college semesters starting up in Michigan, it may not be so easy to get college students to think responsibly. This time can be especially tough with the need of moving back to school and getting...

Three reasons to put a power of attorney in place

Originally posted on 11/08/2016 While no one wants to think of the unfortunate possibility of being incapacitated or of a time when we can't handle our own affairs, this circumstance is a real possibility. If something happens and this...

How to approach parents about estate planning

Originally posted on 12/09/2016 Family forms a strong foundation for many people's first and most intimate community. It is important to strengthen these first relationships so even uncommon questions become natural. For those...

PROBATE 44: Petition for Mental Health Treatment

Michigan’s Mental Health Code governs the civil admission and discharge procedures for a person with a mental illness. Specifically, MCL 330.1434 sets forth the procedure and content requirements for a petition for mental health treatment.

Should you get your criminal record expunged?

Originally posted on 04/12/2017 If you have been convicted of a crime, have served your sentence, and have followed all court recommendations, you should be able to put your past behind you and move on with life. Moving forward is critical...

Choosing the right executor for an estate

Originally posted on 05/28/2017 When people are thinking about planning their estate, they often think about trying to minimize the estate tax, keeping their will updated, and keeping items out of probate court; however, there is another...

Understanding how the Miranda warning works

Originally posted on 11/25/2016 Michigan residents who have seen television police shows or movies involving law enforcement have no doubt watched many dramatic scenes with officers quoting something to the effect of, "You have the...

Don't let a bad decision, unfair contract, or a messy divorce get in the way of a promising future!
Contact the experienced team at Aldrich Legal Services today to schedule your free initial
consultation
and secure reliable and trustworthy representation today!
Get the Help You Need From a Team You Can Truly Count On: (734) 404-3000
734-237-6482
734-366-4405