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Case Citations [1] (Spring 2025)

handle is hein.ali/retsgy0598 and id is 1 raw text is: THE AMERICAN LAW INSTITUTE Spring 2025 Citations SURETYSHIP AND GUARANTY 3D CHAPTER 2. FORMATION, ENFORCEMENT, AND INTERPRETATION OF THE SECONDARY OBLIGATION TOPIC 2. ENFORCEMENT OF THE SECONDARY OBLIGATION § 12. When Secondary Obligation Is Voidable Due to Misrepresentation U.S.2024. Cit. in sup. Buyer of a house filed an adversary proceeding against Chapter 7 debtor, alleging that debtor's debt could not be discharged, because the debt was incurred through debtor's business partner's knowing failure to disclose material defects related to the house, and the partner's fraudulent intent had to be imputed to debtor through their legal partnership to renovate and sell the house. After the bankruptcy court found that debtor was entitled to a discharge and the bankruptcy court of appeals affirmed, the Court of Appeals for the Ninth Circuit reversed in part and remanded. This court affirmed, holding that the plain language of the bankruptcy statute excepted from discharge debts incurred by fraud without regard to the culpability of the debtor. The court pointed out that individuals who themselves were victims of fraud were also likely to have defenses to liability, reasoning, in part, that, under Restatement of Suretyship & Guaranty § 12, a surety or guarantor who was duped into assuming secondary liability could potentially void its obligations. Bartenwerfer v. Buckley, 143 S.Ct. 665, 676. CHAPTER 3. INCIDENTS OF SURETYSHIP STATUS TOPIC 3. OBLIGEE'S RIGHTS AGAINST SECONDARY OBLIGOR-GENERALLY, AND AS AFFECTED BY ACTS OF OBLIGEE TITLE B. SURETYSHIP DEFENSES § 37. Impairment of Suretyship Status Ct.Int'l Trade, 2024. Cit. in sup. Government sued surety that issued a continuous bond for importer of garlic from China, after surety failed to pay customs duties owed by the importer. This court granted surety's motion for summary judgment based on the unreasonableness of the government's delay in COPYRIGHT 02025 By THE AMERICAN LAW INSTITUTE All rights reserved Printed in the United States of America For earlier citations, see the Appendices, Supplements, or Pocket Parts, if any, that correspond to the subject matter under examination.