Chemical Bank v. Paul

PRESIDING JUSTICE TULLY

delivered the opinion of the court:

Defendant David Paul signed a personal guaranty of $5 million in connection with $90 million in loans received from Chemical Bank. After declaring the loans in default, Chemical foreclosed on the underlying property, which resulted in a deficiency of $40 million. Chemical then brought suit on the guaranty, wherein Paul alleged, as an affirmative defense, Chemical’s breach of the implied covenant of good faith and fair dealing. Chemical appeals from the jury’s finding in favor of Paul.

The undisputed facts are as follows. In November…