Opinion ID: 510088
Heading Depth: 1
Heading Rank: 4

Heading: The Status of Nucorp as a Petitioning Creditor

Text: 30 Debtor further argues that Nucorp cannot be a petitioning creditor because the guaranty covered the indebtedness owed only to Abilene Supply Division. 6 Courts must interpret a contract to give effect to the intent of the parties at the time of contract formation. Mercury Investment Co. v. F.W. Woolworth Co., 706 P.2d 523, 529 (Okla.1985); Okla.Stat.Ann. tit. 15, Sec. 152 (West 1966); see also Colonial Bank of Alabama v. Coker, 482 So.2d 286, 290-91 (Ala.1985) (recognizing that courts generally apply the rules governing the interpretation and construction of contracts to guaranties). The parties' intent regarding a guaranty is to be discerned from the entire document. Mercury Investment Co. v. F.W. Woolworth Co., 706 P.2d at 529; First Nat'l Bank & Trust Co. of El Reno v. Stinchcomb, 734 P.2d 852, 853 (Okla.App.1987); Okla.Stat.Ann. tit. 15, Sec. 155. The language in a contract is given its plain and ordinary meaning unless technical terms are used. Mercury Investment Co. v. F.W. Woolworth Co., 706 P.2d at 529; State Capitol Bank of Oklahoma City v. Norick, 550 P.2d 587, 591 (Okla.App.1976) (indicating the reluctance of Oklahoma courts to judicially rewrite guaranties); Okla.Stat.Ann. tit. 15, Sec. 160. Where the guaranty language is unambiguous, its purpose and meaning must be determined from the four corners of the document without using parol evidence to vary, modify or contradict the terms of the instrument. First Nat'l Bank & Trust Co. of El Reno v. Stinchcomb, 734 P.2d at 853; Ollie v. Rainbolt, 669 P.2d 275, 279 (Okla.1983); Okla.Stat.Ann. tit. 15, Sec. 155; see also In re Tikijian, 76 B.R. at 316 (stating that the guarantor's subjective beliefs regarding the guaranty which were not communicated to the creditors are inconsequential). A term is unambiguous where it is reasonably and fairly susceptible of only one meaning. Taylor v. Beech Aircraft Corp., 407 F.Supp. 69, 72 (W.D.Okla.1976). 31 A guaranty is deemed continuing if it indicates a future course of dealing, which is not limited to a single transaction, for an indefinite period of time or until it is revoked. Rucker v. Republic Supply Co., 415 P.2d 951, 953; Okla.Stat.Ann. tit. 15, Sec. 336. Liability under a continuing guaranty continues until the guaranty is revoked unless it contains an express limitation regarding the duration of the guarantor's responsibility. Id. Guaranties are construed most strongly against the guarantor. First Nat'l Bank of Hominy, Oklahoma v. Citizens & S. Bank of Cobb County, Marietta, Georgia, 651 F.2d 696, 699 (10th Cir.1981). But the scope of a guaranty will not be expanded beyond its express terms. Id. 32 In the instant case, the scope and meaning of the guaranty are unambiguous. The guaranty language specifies that the provisions of this agreement shall extend and insure [sic] to the benefit of Seller, its successors and assigns. Although Oklahoma courts have not defined this term in the context of a guaranty, other state courts have found this term to be unambiguous and have recognized its plain meaning: the guarantor promises to guarantee the debts of successors of the guaranteed party. See, e.g., Schepps v. First Security Nat'l Bank of Beaumont, Texas, 462 S.W.2d 341, 342-43 (Tex.App.1971); Interstate Trust & Banking Co. v. Sabatier, 189 La. 199, 179 S. 80, 82 (1937); North Texas Nat'l Bank v. Thompson, 23 S.W.2d 494, 498-99 (Tex.App.1929); see also Carlock v. National Co-Operative Refinery Assoc., 424 F.2d 148, 149-50 (10th Cir.1970) (stating that such terms in a contract unambiguously mean that successors and assigns are covered by the agreement). Consequently, the identical term used in the guaranty at issue is unambiguous and extends to Nucorp as a successor in interest to Abilene Supply Division. 33 Moreover, the express language of the guaranty indicates that it is continuing in nature. The guaranty states that debtor promises to: 34 promptly pay to Seller any and all indebtedness (hereinafter referred to as indebtedness, whether arising out of a single or out of more than one transaction ) now owing or that may hereafter become owing to it by [debtor].... 35 (emphasis added). The language clearly evinces the parties' intention that debtor would guarantee future dealings between himself and Abilene Supply Division, its successors or assigns. See, e.g., Schepps v. First Security Nat'l Bank of Beaumont, Texas, 462 S.W.2d at 342-43. This interpretation is bolstered by the fact that the guaranty does not contain express language limiting its duration. See Rucker v. Republic Supply Co., 415 P.2d at 953; Goeke v. Merchants Nat'l Bank & Trust Co. of Indianapolis, 467 N.E.2d 760, 767 (Ind.App.1984). Because the guaranty is unambiguous, we agree with the district court that the bankruptcy court erred in admitting extrinsic evidence to determine the meaning of the guaranty. We also affirm the district court's legal conclusion that the guaranty is continuing and covers all successors and assigns of Abilene Supply Division. Thus, Nucorp has standing as a petitioning creditor. 36