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Thompson v. LaFarge Building Materials, Inc.
323 Ga. App. 276
Ga. Ct. App.
2013
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Background

  • 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)
Read the full case

Case Details

Case Name: Thompson v. LaFarge Building Materials, Inc.
Court Name: Court of Appeals of Georgia
Date Published: Jul 16, 2013
Citation: 323 Ga. App. 276
Docket Number: A13A0740
Court Abbreviation: Ga. Ct. App.