Plaintiff established prima facie its entitlement to summary judgment on defendants' guaranties of a nonparty's obligations under a loan agreement by submitting evidence of the loan agreement, promissory notes, individual guaranties, and the borrower's and defendants' failure to pay. In opposition, defendants failed to raise an issue of fact.
The claims of breach of contract and negligent interference with collateral are not defenses to the borrower's liability under the loan agreement; they are merely counterclaims. The adjudication of these claims will not affect the borrower's liability for repayment of the amounts borrowed before the breach occurred, although it may entitle the borrower to damages. Because the breach of contract and negligent interference with collateral claims are separate from the borrower's unequivocal and unconditional obligation to repay the monies it was loaned, defendants are still liable under the guaranties and promissory notes.
Case: Capital One Taxi Medallion Fin. v. Corrigan, NY Slip Op 01488 (1st Dep't February 28, 2017)
Here is the decision.
Monday's issue: Motions to vacate.