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Case Citations [i] (Spring 2026)

handle is hein.ali/retsgy0600 and id is 1 raw text is: THE AMERICAN LAW INSTITUTE Spring 2026 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 Mich.App.2023. Cit. but not fol., subsec. (3) cit. and quot. but not fol. Investor in companies that operated a catering business sued bank, seeking a declaration that her personal guaranty of the companies' debts to bank was unenforceable because bank wrongfully failed to disclose the companies' true financial status before investor executed the guaranty and invested in the companies. The trial court granted summary judgment for bank on investor's claim of silent fraud. This court affirmed, holding that investor failed to show that bank had a legal or equitable duty to disclose the companies' dire financial circumstances to investor. The court declined to adopt Restatement Third of Suretyship and Guaranty § 12, which required an obligee, such as bank, to notify a guarantor of any adverse facts at the outset of the transaction that would materially increase the guarantor's risk beyond that which the guarantor reasonably assumed, reasoning that § 12 would conflict with Michigan precedent. Mercurio v. Huntington National Bank, 16 N.W.3d 748, 763, 764. CHAPTER 3. INCIDENTS OF SURETYSHIP STATUS TOPIC 2. SECONDARY OBLIGOR'S RECOURSE AGAINST PRINCIPAL OBLIGOR TITLE C. RESTITUTION AND SUBROGATION § 31. Secondary Obligor's Right to Return Performance; Obligee's Right of Set-Off Minn.2025. Subsec. (2)(b) quot. in ftn. After a contractor that defaulted on its loans from bank and also defaulted on paying its laborers and subcontractors on public-works projects was placed in receivership, bank that had a perfected security interest in the contractor's accounts receivable and surety that paid the laborers and suppliers under payment bonds issued to the contractor filed competing claims to certain COPYRIGHT C2026 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.