Note to readers: This brief post covers only one key aspect of this important case. There are other ramifications for contractual relationships that could impact you. Check with us for more details if you have an interest, or any concerns.
In the recent court case of California Bank & Trust v. Del Ponti, the court set an important precedent that applies to disputes on commercial loans between property developers and lenders. In effect, a commercial lender cannot enforce waivers in guarantee agreements which are unlawful or otherwise contravene public policy. Guarantor waivers are limited to certain legal and statutory defenses specifically set forth in the agreements, but not equitable defenses. Continue reading