Summary
noting that a guaranty agreement is a "separate undertaking" that may result in "liability of the guarantor may be broader than and exceed the scope of that of the principal."
Summary of this case from Wells Fargo Bank, N.A. v. Bivona & Cohen, P.C.Opinion
January 9, 1996
Appeal from the Supreme Court, New York County (Stephen Crane, J.).
The IAS Court, in granting summary judgment, properly determined that defendant-appellant Finkelstein, as the guarantor of the promissory note issued by defendant Concord, had waived the defense of fraud in the inducement of the underlying agreement and the guarantee. Appellant is barred from asserting the defense as a matter of law based upon the absolute and unconditional disclaimer and waiver contained in the personal guarantee which specifically precluded the guarantor from raising any defenses or counterclaims relating to the underlying debt ( Citibank v Plapinger, 66 N.Y.2d 90, 94-95; Chase Manhattan Bank v Goldberger, 199 A.D.2d 97).
Finally, the liability of the guarantor may be broader than and exceed the scope of that of the principal where the guarantee, which is a separate undertaking, is, by its unqualified language, enforceable against the guarantor ( European Am. Bank v Lofrese, 182 A.D.2d 67, 74; Manufacturers Hanover Trust Co. v Green, 95 A.D.2d 737, appeal dismissed 61 N.Y.2d 760). Thus, the IAS Court properly granted that branch of plaintiff's motion for summary judgment against defendant Finkelstein for the entire amount due and owing on the promissory note, since the guarantee specifically provided that, upon default, the guarantor was liable to pay "[t]he entire outstanding principal amount of the Note, together with any costs (including reasonable attorneys fees and expenses) incurred by the holder of the Note in connection with such nonpayment".
We have reviewed defendant-appellant Finkelstein's remaining arguments and find them to be without merit.
Concur — Sullivan, J.P., Rosenberger, Ellerin, Rubin and Nardelli, JJ.