Brooks v. GWINNETT COMMUNITY BANK
311 Ga. App. 806
| Ga. Ct. App. | 2011Background
- Brooks and other International Hospitality, LLC guarantors signed a personal guaranty for company debt totaling $3,926,000.
- Brooks later sold his interest in International Hospitality and other entities to Giorgio Medici for $1.7 million; Medici agreed Brooks would be released from guaranties.
- 银行 loan officer indicated the bank would release Brooks from personal guaranties arising from International Hospitality.
- International Hospitality defaulted; Gwinnett Community Bank sued the company and guarantors on notes and guaranty.
- Brooks asserted affirmative defenses including release from guaranty; bank moved for partial summary judgment on those defenses, which the trial court granted.
- The Georgia Court of Appeals reviews de novo the grant of summary judgment, focusing on whether a written release existed.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether Brooks was released from the guaranty | Brooks contends there was a release from the guaranty | No written release; prior statements insufficient for modification | No written release; release not proven; judgment affirmed |
Key Cases Cited
- Hendricks v. Enterprise Financial Corp., 199 Ga.App. 577 (1991) (written modification required for release of a guaranty)
- Kennerly v. First Colony Bank, 205 Ga.App. 352 (1992) (parol evidence cannot vary unambiguous guaranty terms)
- Core LaVista, LLC v. Cumming, 308 Ga.App. 791 (2011) (summary judgment standard; de novo review)