67 So. 3d 627
La. Ct. App.2011Background
- Lease of commercial space between 3848 Veterans BLVD, LLC and Barry's Flooring for 3 years starting Dec 1, 2007; rent $30,840 annually, paid in 12 installments.
- Veteran's later acquired the property and assumed preexisting leases.
- Barry's claimed increased occupancy impaired parking, sought lease termination.
- Barry's vacated the premises on May 1, 2009, before lease end.
- Veteran's sued for breach of lease and damages; Wilbert added as personal guarantor in solido.
- Trial court held Wilbert not liable in solido; appellate reversal sought by Veteran's.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether Wilbert acted as a personal guarantor | Veteran's: language creates personal surety | Barry's/Wilbert: language is not personal capacity; corporate signatory | Wilbert liable in solido |
Key Cases Cited
- Pelican Plumbing Supply, Inc. v. J.O.H. Construction Co., Inc., 653 So.2d 699 (La.App.5 Cir.1995) (signor not personal surety despite similar language when intent unclear)
- American Bank & Trust Co. of Houma v. Wetland Workover, Inc., 523 So.2d 942 (La.App.4 Cir.1988) (signer’s capacity determined by intent; representation alone not dispositive)
- Keller Indus., Inc. v. Deauville Consultants, Inc., 459 So.2d 636 (La.App.5 Cir.1984) (guaranty/suretyship defined; absolute intent to be bound required)
- Custom-Bilt Cabinet & Supply, Inc. v. Quality Built Cabinets, Inc., 748 So.2d 594 (La.App.2 Cir.1999) (contracts interpreted by true intent; parol evidence restricted)
- American Bank & Trust Co. v. Wetland Workover, Inc., 523 So.2d 942 (La.App.4 Cir.1988) (representative-capacity signing examined against substantive obligation)