Thompson v. LaFarge Building Materials, Inc.
323 Ga. App. 276
Ga. Ct. App.2013Background
- Elite Dwellings, LLC, Thompson, and Greer Chapel Development, Inc. were sued by LaFarge for a debt of about $59,917 and related liens.
- Elite obtained a line of credit from LaFarge in 2007 to buy building supplies; Thompson was president/owner of Elite.
- The Credit Application included a Continuing Guaranty where Thompson signed as guarantor.
- The guaranty stated unconditionally that Thompson guaranteed payment of all indebtedness and costs; the form incorporated the entire application.
- LaFarge moved for summary judgment arguing Thompson was personally liable under the guaranty; the trial court granted it.
- Thompson appealed, arguing the guaranty did not satisfy the Statute of Frauds because principal debtor identity was unclear.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Does the continuing guaranty satisfy the Statute of Frauds? | Thompson | LaFarge | Court reversed; Statute of Frauds not satisfied |
Key Cases Cited
- LaFarge Bldg. Materials v. Pratt, 307 Ga. App. 767 (2011) (guaranty lacking principal debtor name; not enforceable)
- McDonald v. Ferguson Enterprises, 274 Ga. App. 526 (2005) (identity of applicant not established; guaranty unenforceable)
- Legacy Communities Group v. Branch Banking & Trust Co., 316 Ga. App. 496 (2012) (ambiguous guaranty; parol evidence not allowed to supply missing terms)
- Capital Color Printing v. Ahearn, 291 Ga. App. 101 (2008) (ambiguity can be explained with parol evidence; dictionary meaning used)
- Dabbs v. Key Equip. Finance, 303 Ga. App. 570 (2010) (contract of guaranty must be in writing under Statute of Frauds)
