MLG Enters., LLC v. Johnson
Annotate this CaseIn 2007, Landlord entered into a written agreement for the lease of commercial real estate to Tenant. In 2009, Landlord filed a complaint against Tenant and Richard Johnson alleging that Tenant breached the lease and that Johnson breached the personal guaranty agreement in the lease. The trial court dismissed Landlord’s claims against Johnson, concluding that Johnson was not personally liable for the obligations in the lease because he did not sign the lease in his personal capacity. At issue on appeal was whether Johnson agreed to be personally liable for Tenant’s obligations when he signed the agreement a second time. The Court of Appeals affirmed. The Supreme Court reversed, holding that Johnson’s second signature, “which followed a paragraph clearly indicating that the parties agreed that [Johnson] would be personally responsible for [Tenant’s] obligations,” was effective to bind Johnson. Remanded.
Court Description:
Authoring Judge: Justice Jeffrey S. Bivins
Trial Court Judge: Judge Timothy L. Easter
We granted permission to appeal in this case to determine whether the individual who signed a commercial lease agreement on behalf of the corporate tenant also agreed to be personally liable for the tenant s obligations when he signed the agreement a second time. Over a dissenting opinion, the Court of Appeals held that the individual s second signature did not personally bind him because he handwrote for Mobile Master Mfg. LLC after his name. We hold that the second signature, which followed a paragraph clearly indicating that the parties agreed that the individual would be personally responsible for the tenant s obligations, was effective to bind the individual. Accordingly, we reverse the Court of Appeals judgment and remand this matter for further proceedings consistent with this opinion.
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