Radiance Capital Receivables Fourteen, LLC v. FosterAnnotate this Case
In this action brought by Radiance Capital Receivables Fourteen, LLC seeking to collect the principal due on a promissory note the Supreme Court affirmed the decision of the circuit court sustaining Defendants' plea in bar based on the statute of limitations and dismissing Radiance Capital's complaint with prejudice, holding that Defendants were not estopped from pleading the statute of limitations.
Foster and Wilson Building, LLC (the Company) executed a promissory note, and Robert Foster and James Wilson executed a continuing guaranty agreement guaranteeing to pay the Company's debt. In the guaranty, Foster and Wilson agreed to waive the benefit of any statute of limitations or other defenses affecting the guarantor's liability under the agreement. After the Company defaulted on the promissory note, Radiance Capital, the holder of the promissory note and guaranty, brought suit against Foster and Wilson seeking to collect the principal due on the note, interest, and attorney's fees. Foster and Wilson, in turn, argued that the claim was barred by the statute of limitations. The circuit court concluded that the contractual waiver of the statute of limitations defense was not valid and dismissed Radiance Capital's complaint with prejudice. The Supreme Court affirmed, holding that the waiver was neither valid nor enforceable under Virginia law.