Ascendiant Capital Group v. Todd Smith

MEMORANDUM

This is an action filed by a lender against both the principal and guarantor of a promissory note. Plaintiff-Appellee is Ascendiant Capital Group, LLC (“Plaintiff’), the lender, and defendants-appellants are Summit Capital & Development, LLC, the principal, and Todd L. Smith, the guarantor (“Defendants”). The jury returned a verdict in favor of the plaintiff and the district court entered a judgment of joint and several liability against the defendants. Under California law, the liability on a promissory note of this nature is joint and several on the part of the principal and the guarantor; the plaintiff is not entitled to a double recovery. Impac Imported Parts & Accessories Corp. v. Rattray, 95 Cal.App.3d 792, 796 , 157 Cal. Rptr. 226 (1979) (citing Cal. Civ.Code § 2807).

The instructions to the jury were not controverted, and the jury was asked on the verdict form to state the damages assessed against each defendant. The jury did so by indicating the amount of “$357,-500” in the blank after the name of each defendant.

In this appeal, Ascendiant contends that the district court erred in entering a judgment of joint and several liability in the amount of $357,500…