Regions Bank vs. Cabinet Works, L.L.C., No. 11-CA-748, 2012 La. App. LEXIS 478 (La. Ct. App. 5th Cir., April 10, 2012)
Fact:
Plaintiff: Regions Bank (hereinafter “Regions”)
Defendants: Cabinet Works, L.L.C., Chad C. Adams and Christopher Adams (as continuing guarantors of Cabinet Works L.L.C.).
Cabinet Works, L.L.C. is a limited liability company that borrowed approximately $250,000 from Regions Bank in December, 2006 and Mr. Adams executed a guaranty in connection with the loan. In May 2008, Cabinet Works defaulted. On June 23rd, 2008, the bank sued the company, Mr. Adams and another guarantor.
While this case was pending, Mr. Adams’ attorney and Regions’ attorney had correspondence with each other about a possible settlement of the banks’ claims against Mr. Adams. Mr. Adams asserted that on December 18, 2008, Regions' attorney, David Cohn, e-mailed Mr. Adams' attorney, Kenneth Fonte. In the e-mail message Cohn stated that Regions had agreed to accept $175,000 to release Chris from his guaranty related to the Cabinet Works debt. Plaintiff’s attorney advised defendant’s attorney to prepare a release document to be signed by the bank and to e-mail it to Cohn for review and comment. Cohn further advised that the payment must be finalized before year-end.
On January 11th, 2010, the District granted Plaintiff the summary judgement in favor and reserved their right to process against defendant.
On appeal, Mr. Adams argued that initialed e-mail correspondence between his attorney and Regions’ attorney established a compromise of the bank’s claims against Mr. Adams and that the bank was therefore barred from proceeding against him under the guaranty.
After examining the correspondence between the parties’ attorneys, the court concluded that their e-mail exchange did not create a compromise contract.
Accordingly, the District Court’s judgment was upheld. Costs of this appeal are assessed against Christopher Adams.
Issues:
In order to constitute an...