Western-Southern Life Assurance Co. v. Kaleh

The Fifth Circuit vacated the district court's judgment in favor of Western in an action alleging breach of three personal guarantees. In this case, defendant signed the guarantee agreements in conjunction with a real estate development project and Western financed the project. Western filed suit against defendant after the borrowers defaulted on the underlying loans and Western foreclosed on the property. The court held that the district court correctly identified the governing law; the two-year limitations period in TEX. PROP. CODE 51.003(a) is procedural and applied insofar as it barred Western's claim for recovery of unpaid debt under the Construction Loan; the district court shall evaluate on remand whether the Mezzanine Loan's promissory note waived notice of acceleration, and in turn, shall examine the ultimate timeliness of the Mezzanine Guarantee claim and its constituent parts under the four-year limitations period; the Completion Guarantee claim was timely; and the court upheld that district court's denial of Western's attorney’s fees and post-foreclosure construction costs. View "Western-Southern Life Assurance Co. v. Kaleh" on Justia Law