Personal Guarantees, Oral Modifications, Mitigation, Waiver

| Mar 16, 2013 | Firm News

The Rhode Island federal district court has rejected the arguments of three defendants who personally guaranteed a loan that the lender had made oral modifications of the loan terms, had waived its rights or failed to mitigate its damages.  The defendants made the guarantees with respect to a residential real estate development near the famous St. Andrews golf course.  The development company defaulted on the loans and the lender sued on the guarantees seeking almost 16 millions pounds.  The court said the terms of the loan barred defendants’ arguments that there were oral modifications of the loan terms or that the lender failed to mitigate its damages or that the lender had waived its rights, among other affirmative defenses.  It granted summary judgment.  The Governor and Company of the Bank of Scotland v. Wasserman, C.A. No. 10-328-M (D.R.I. Mar. 5, 2013).



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