In a May 11, 2011, decision by Justice Emerson, the court granted plaintiff-manufacturer’s motion for summary judgment in lieu of complaint against defendant-wholesaler in connection with a personal guarantee executed by defendant in favor of plaintiff. Defendant guaranteed his wholesale company’s purchase of doors manufactured by plaintiff in Texas under a sales credit agreement. After defendant became delinquent on its payments under the parties’ agreement, plaintiff sued and obtained a default judgment against defendant in Texas. Because defendant consented to personal jurisdiction in Texas by signing a guarantee that contained a forum-selection clause, the court recognized the default judgment as a basis for plaintiff’s motion. The court then rejected defendant’s argument that he was coerced into signing the guarantee based on his failure to establish that plaintiff’s alleged threat to withhold delivery precluded him from procuring doors from some other source and from suing plaintiff for breach of contract. The court also rejected defendant’s argument that the guarantee was unenforceable for lack of consideration based on evidence in the record reflecting that plaintiff continued to extend credit and provide doors to defendant’s company.
Steves & Sons, Inc. v Pottish, Sup Ct, Suffolk County, May 11, 2011, Emerson, J., Index No. 39918/10