Loving & Associates, Inc. v. Carothers

OPINION

LANSING, Judge.

Loving & Associates, Inc., sued Gibson Carothers to enforce a personal guaranty he issued to Loving to secure a line of credit to Lake Street Shirts, Inc. The district court granted Carothers summary judgment on Loving’s claims, reasoning that the 1992 merger of Lake Street Shirts, Inc., and Stafford Blaine Designs, Ltd., discharged Carothers’s obligations under the guaranty by operation of law. Because we conclude that a merger does not necessarily discharge a guaranty by operation of law and that genuine issues of material fact remain to be decided, we reverse and…