Court Opinion

ID: 9847701
Source: CourtListenerOpinion
Date Created: 2023-09-24 04:05:31.178449+00
Date Added: 2024-06-11T09:17:27.858780
License: Public Domain

Harwell, Chief Justice:
I respectfully dissent. In my opinion, the guarantors are bound by the waiver of trial by jury provision contained in the lease.
The guarantee provides that: “This Guarantee is attached to and made a part of the Lease, and Guarantor acknowledges that it has received a copy thereof.” In my opinion, this language indicates that the lease and guarantee should be read as one instrument thereby binding the guarantors to the waiver of trial by jury provision. See McGee v. F.W. Poe Mfg. Co., 176 S.C. 288, 180 S.E. 48 (1935) (language of guaranty must be interpreted according to the intent of the parties and in light of the circumstances for which it was executed); see also Peoples Fed. Savings and Loan Ass’n v. Myrtle Beach Retirement Group, Inc., 300 S.C. 277, 387 S.E. (2d) 672 (1989) (intention of parties as expressed in guaranty should guide the court); Davenport v. Stratton, 24 Cal. (2d) 232, 149 P. (2d) 4 (1944) (lease and guaranty construed as one instrument where guaranty referenced lease and was given in consideration of lease); 38 C.J.S. Guaranty § 38 (1943) (writing referred to in contract of guaranty becomes part of guaranty).
Here, the facts and circumstances of the case demonstrate that the guarantors intended to be bound by the terms of the lease. As I noted above, the guarantee specifically incorporates the lease by reference. In addition, the guarantee provides that the guarantors “guarantee the payment of all Rent . . . and the prompt performance by Tenant of all other terms and conditions of the Lease.” (Emphasis added.) Finally, the guarantors are the officers and sole shareholders of the tenant corporation. The guarantors were represented by counsel who reviewed and negotiated the lease and guarantee. Based on these facts, I would hold that the guarantors are bound by the waiver of trial by jury provision.