Helton v. JASPER BANKING CO.
311 Ga. App. 363
| Ga. Ct. App. | 2011Background
- Helton challenged a bank’s claim on a personal guaranty tied to a renewed note.
- Zanjero LLC obtained a loan in 2007 from Jasper Banking Company; initial principal $1,025,644.05.
- The loan matured and was renewed on April 24, 2009, for $1,026,144.05.
- Helton signed a guaranty referencing the renewed note; the date at the top was April 24, 2009, with no handwritten date.
- Bank moved for summary judgment; Helton argued lack of consideration and introduced parol evidence of a misdated execution.
- Trial court granted summary judgment; appellate court reversed, finding genuine issues of material fact on consideration due to admissible parol evidence.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether parol evidence can prove a date mistake on a guaranty. | Helton; parol evidence admissible to show wrong execution date. | Jasper; parol evidence cannot contradict an unambiguous written date. | Yes; parol evidence admissible to prove date mistake, creating factual issue. |
| Whether there was new consideration for the guaranty executed after the note renewal. | Helton; execution after renewal requires new consideration. | Bank; consideration not established as an issue if dated appropriately. | There is a genuine issue of material fact as to consideration. |
Key Cases Cited
- Gwinnett Commercial Bank v. Flake, 151 Ga.App. 578, 260 S.E.2d 523 (1979) (1979) (preexisting-debt guaranty requires new consideration)
- Smith v. Smith, 223 Ga. 560, 156 S.E.2d 901 (1967) (1967) (parol evidence admissible to prove mistake in date on deed)
- Cohen v. Sandy Springs Crossing Assocs., 238 Ga.App. 711, 520 S.E.2d 17 (1999) (1999) (guaranty/deed date correction by parol evidence)
- Duke Galish, LLC v. Manton, 308 Ga.App. 316, 707 S.E.2d 555 (2011) (2011) (parol evidence exception to immutability of written contracts)
- Lamb v. Fulton-DeKalb Hosp. Auth., 297 Ga.App. 529, 677 S.E.2d 328 (2009) (2009) (consideration in guaranty contexts)
- Citizens & Southern Nat. Bank v. Williams, 147 Ga.App. 205, 249 S.E.2d 289 (1978) (1978) (lack of new consideration when not conditioned on new benefit)