Praultshell, Inc. v. River City Bank

880 S.E.2d 616 (2022)

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Nature Of The Case

This section contains the nature of the case and procedural background.

Facts

On March 19, 2020, D executed a promissory note in favor of D in the amount of $952,473.82, with a maturity date of April 3, 2021. The loan was for the construction and operation of a brew pub and restaurant. The debt was secured by a lien on two parcels of real property (including all fixtures, equipment, and furniture therein) where the establishment was located. Ds each executed an “absolute, present, unconditional, and continuing” guaranty of payment of the Note. D stopped making payments on the Note in 2021. P sent a demand letter declaring the debt in default. P sued Ds for breach of the Note, breach of the guaranties, and attorney fees. P moved for summary judgment, and the trial court granted P's motion. The court rejected Ds‘ claims of impossibility or impracticability of performance and frustration of purpose. It awarded P a total judgment of $918,031.20 (including principal, interest, late charges, and attorney fees). Ds appealed. Ds argue that they were forced to close the brew pub and restaurant as a result of the Wuhan Flu (COVID-19). Ds claim that the closing of the brew pub and restaurant made it “impossible to repay the loan at issue per its terms.”

Issues

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Holding & Decision

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Legal Analysis

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