The Law Office of Gregory P. Olson recently successfully litigated and ultimately resolved a claim for breach of Guaranty prior to the commencement of trial. When a business obtains a line of credit, many banks will require a personal guaranty of the line of credit. A business owner dealing with a breach of guaranty claim will need to develop a strategy to address the claim and put all options on the table. Litigating a breach of guaranty claim can be expensive, and one option as an alternative to litigation is to sit down with the attorneys or representatives from the bank or lender as soon as a demand letter is received. Often times a reasonable settlement can be obtained.
Another issue is financial condition, and most banks and lenders will request full financial disclosure prior to engaging in good faith negotiations designed to resolve the litigation. A complete legal analysis of the validity and enforceability of the guaranty is also a critical part of the process. Such issues include whether the guaranty met certain legal requirements;
- Whether adequate consideration was provided
- Whether the guaranty is conditional or unconditional
A review of such issues may reveal valid defenses. In the recent matter, the San Diego Litigation Attorney at the Law Office of Gregory P. Olson resolved the litigation matter after the case management conference prior to trial and provided the client with the best alternative to ongoing litigation.
The post San Diego Litigation Attorney – Breach of Guaranty Claims appeared first on Gregory P. Olson.