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Case Citations [i] (July 2016 through April 2017)

handle is hein.ali/retsgy0585 and id is 1 raw text is: SURETYSHIP AND GUARANTY 3D CHAPTER 1. TRANSACTIONS GOVERNED BY LAW OF SURETYSHIP AND GUARANTY § 1. Scope; Transactions Giving Rise to Suretyship Status Ill.App.2015. Cit. in sup., subsec. (1)(c) quot. in sup. City that contracted with developer to develop and improve certain property brought, inter alia, an action against surety that provided bonds guaranteeing developer's performance, after developer failed to complete the improvements; surety filed an unjust- enrichment counterclaim against buyer that purchased parcels of the property, alleging that buyer was the primary obligor bound to the city to make the improvements on its property, and that surety was entitled to reimbursement for any amount city recovered from surety. The trial court granted buyer's motion to dismiss the counterclaim. This court reversed in part, holding that surety sufficiently stated a valid cause of action for unjust enrichment. Citing Restatement Third of Suretyship and Guaranty §§ 1 and 21, the court explained that, if surety was not released from its surety obligations, buyer could be liable as a successor principal even if buyer was not in direct contractual privity with surety. City of Elgin v. Arch Ins. Co., 53 N.E.3d 31, 39. CHAPTER 2. FORMATION, ENFORCEMENT, AND INTERPRETATION OF THE SECONDARY OBLIGATION TOPIC 1. FORMATION OF THE SECONDARY OBLIGATION § 9. Consideration R.I.2016. Subsec. (2)(a) quot. in sup. Seller that transferred an unimproved wooded lot to buyer in exchange for a promissory note sued buyer and guarantor of the note, alleging that defendants defaulted on their obligations. The trial court granted summary judgment for seller. Affirming, this court held that there was nothing in the record to support guarantor's argument that his guaranty was unenforceable for failure to recite adequate consideration. The court reasoned that seller's promise to grant a loan to buyer in exchange for guarantor's promise to guarantee repayment was sufficient consideration under Restatement Third of Suretyship and Guaranty § 9; although a guarantee could be supported by separate consideration that flowed directly to the guarantor, where, as here, the guarantor was also a corporate officer of the borrower, the guarantor did not need to receive a separate benefit in order for the guarantee to be enforceable. Tri-Town Const. Co., Inc. v. Commerce Park Associates 12, LLC, 139 A.3d 467, 477- 478. TOPIC 3. INTERPRETATION OF THE SECONDARY OBLIGATION § 16. Continuing Guaranty -A u m For earlier citations, see the Appendices, Supplements, or Pocket Parts, if any, that correspond to the subject matter under examination.

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