Mehrdad Moayedi v. Interstate 35/chisam Road, L.P. and Malachi Development Corporation

This dispute asks whether a party waives the statutory right of offset under section 51.003(c) of the Property Code by agreeing to a general waiver of defenses in a guaranty agreement. The court of appeals answered yes, holding that section 51.003 creates an affirmative defense and that the guaranty agreement waives all possible defenses against liability, including the offset provision at issue here. We affirm.

I. Factual and Procedural Background

Villages of Sanger, Ltd. borrowed $696,000 from lenders I-35/Chisam Road, L.P. and Malachi Development Corporation. The three-year note was secured…