Regions Bank v. Louisiana Pipe & Steel Fabricators, LLC
80 So. 3d 1209
La. Ct. App.2011Background
- La. Pipe executed a $250,000 Business Loan Agreement with Regions, plus a Promissory Note and Commercial Security Agreement.
- Loupe, as a manager/owner of La. Pipe, signed a Commercial Guaranty guaranteeing the loan obligations.
- The Promissory Note had a maturity and full repayment date of March 18, 2007; by Jan 3, 2008, only $208,611.89 of principal and interest had been paid.
- Regions demanded full payment on August 8, 2008; Regions filed suit in May 2010 seeking the balance plus fees and costs.
- Regions moved for summary judgment on Dec 16, 2010, supported by D’Antoni’s affidavit; no opposition evidence was filed.
- Trial court granted summary judgment February 25, 2011, finding Loupe solidarily liable with La. Pipe for the outstanding debt; Loupe appeals.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Sufficiency of the summary judgment evidence | Regions | Loupe | Evidence sufficient to support SJ |
| Effectiveness and delivery of the guaranty | Loupe guaranteed the indebtedness upon execution and delivery | Delivery date not shown | Guaranty effective upon execution and delivery; delivery proven |
| Consideration for guaranty | Pre-existing debt constitutes sufficient consideration | Insufficient consideration | Sufficient consideration for guaranty shown |
| Breach and damages by Loupe | La. Pipe and Loupe defaulted; amounts due established | No dispute on breach | Loupe breached; Regions proved damages |
Key Cases Cited
- Katz v. Innovator of America, Inc., 552 So. 2d 724 (La. App. 1st Cir. 1989) (guaranty contracts require express suretyship)
- Placid Refining Co. v. Privette, 523 So. 2d 865 (La. App. 1st Cir. 1988) (interpreting guaranty scope within intended limits)
- Ferrell v. South Central Bell Telephone Co., 403 So. 2d 698 (La. 1981) (contract interpretation rules apply to guaranties)
- Commercial Nat. Bank v. Richardson, 113 So. 152 (La. 1927) (consideration for guaranty includes pre-existing debt)
- Home Ins. Co. v. Voorhies Co., 168 So. 724 (La. App. 1st Cir. 1936) (pre-existing interest supports suretyship)
- Whitney Nat. Bank v. Reliable Mailing & Printing Services, Inc., 694 So. 2d 479 (La. App. 5th Cir. 1997) (bank vice president may support SJ with business records)
- Hibernia Nat. Bank v. Rivera, 996 So. 2d 534 (La. App. 5th Cir. 2008) (vice president affidavits acceptable in SJ context)