Armstrong v. Bank of America, N.A.

District Court of Appeal of Florida

Armstrong v. Bank of America, N.A.

776 So. 2d 326, 2001 Fla. App. LEXIS 108, 2001 WL 20755

CourtDistrict Court of Appeal of Florida

DecidedJanuary 10, 2001

DocketNo. 3D00-1205

StatusPublished

Cited by1 cases

This text of 776 So. 2d 326 (Armstrong v. Bank of America, N.A.) is published on Counsel Stack Legal Research, covering District Court of Appeal of Florida primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

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Armstrong v. Bank of America, N.A., 776 So. 2d 326, 2001 Fla. App. LEXIS 108, 2001 WL 20755 (Fla. Ct. App. 2001).

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Opinion

PER CURIAM.

Appellant/Defendant William Armstrong appeals an entry of judgment in an amount that exceeds the limit provided in his personal guaranty of a note executed by Co-Defendant NGLC to Appellee/Plaintiff Bank of America, N.A. Because we find that a court may impose against a guarantor an award of prejudgment interest that causes a judgment to exceed the stated limit of the guaranty, we affirm.

Armstrong guaranteed payment of NGLC’s note in the amount of $1,072,500.00. When the note went into default, Bank of America sued both NGLC and Armstrong. The trial court entered judgment for the bank in the principal amount of $1,072,500.00, plus prejudgment interest in the amount of $61,998.13 for a total award of $1,134,498.13. Although the award of prejudgment interest in this case caused the final judgment to exceed the limit stated in Armstrong’s guaranty, we hold that Florida law permits such an award. A guarantor’s total liability after litigation on the guaranteed note may ex[327]*327ceed the stated limit where the additional amount is the result of the imposition of prejudgment interest which accrues as a matter of law. See Alpha Elec. Supply, Inc. v. G.E. Lee Enters., Inc., 441 So.2d 698, 700 (Fla. 2d DCA 1988) (guarantors’ personal guarantees limited their total liability to $30,000.00; nevertheless, they were held hable for prejudgment interest on the liquidated claim irrespective of the limits contained in their guaranties).

Affirmed.

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PER CURIAM.

Appellant/Defendant William Armstrong appeals an entry of judgment in an amount that exceeds the limit provided in his personal guaranty of a note executed by Co-Defendant NGLC to Appellee/Plaintiff Bank of America, N.A. Because we find that a court may impose against a guarantor an award of prejudgment interest that causes a judgment to exceed the stated limit of the guaranty, we affirm.

Armstrong guaranteed payment of NGLC’s note in the amount of $1,072,500.00. When the note went into default, Bank of America sued both NGLC and Armstrong. The trial court entered judgment for the bank in the principal amount of $1,072,500.00, plus prejudgment interest in the amount of $61,998.13 for a total award of $1,134,498.13. Although the award of prejudgment interest in this case caused the final judgment to exceed the limit stated in Armstrong’s guaranty, we hold that Florida law permits such an award. A guarantor’s total liability after litigation on the guaranteed note may ex[327]*327ceed the stated limit where the additional amount is the result of the imposition of prejudgment interest which accrues as a matter of law. See Alpha Elec. Supply, Inc. v. G.E. Lee Enters., Inc., 441 So.2d 698, 700 (Fla. 2d DCA 1988) (guarantors’ personal guarantees limited their total liability to $30,000.00; nevertheless, they were held hable for prejudgment interest on the liquidated claim irrespective of the limits contained in their guaranties).

Affirmed.

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776 So. 2d 326, 2001 Fla. App. LEXIS 108, 2001 WL 20755, Counsel Stack Legal Research, https://law.counselstack.com/opinion/armstrong-v-bank-of-america-na-fladistctapp-2001.

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