Case Scenario 2: Chuck, the Guarantor, and the Illusion of “Clear Liability”
Chuck personally guaranteed a $50,000 business loan for his one-person company. After a life-threatening medical emergency and legal incapacity, the business collapses. While Chuck was recovering and under a legal disability and incapacitated, the lender negotiated a new payment plan which Chuck was unable to meet. The lender sues Chuck as guarantor and files an MSJ.
Why the MSJ Is Vulnerable
Even guarantors are not automatic judgment targets.
Chuck would likely seek to defeat summary judgment by raising:
- Capacity defenses: Contracts modified or enforced during periods of legal incapacity are subject to challenge.
- Modification disputes: Oral or written repayment modifications—especially lender-initiated—create triable issues of fact.
- Causation and impossibility: Medical incapacity and lender knowledge may defeat willful default claims.
Why Chuck’s Initiation of Discovery At This Stage Would Be Prudent
Serving discovery while opposing MSJ accomplishes two things:
