Huntington Pacifica-Monterey, Inc. v. Fox CA4/3

INTRODUCTION

Steven R. Fox guaranteed the rent payments from Health Essist, Inc. (Health Essist), to a commercial lessor, Huntington Pacifica-Monterey, Inc. (Huntington). Huntington sued Fox under the guaranty, and judgment was entered in Huntington’s favor after a bench trial. On appeal, Fox argues the guaranty was not supported by consideration because it was signed after the lease was executed. Fox’s contention is without merit. There was substantial evidence that the lease and the guaranty were signed at the same time; a presumption of consideration arises with respect to the guaranty because it is in writing; the language of the guaranty makes the leasing of the property consideration for the guaranty; Fox never raised lack of consideration as a defense; and there was evidence Health Essist was not permitted to move into the office space until after the guaranty was signed. We therefore affirm.

STATEMENT OF FACTS AND PROCEDURAL HISTORY

Health Essist leased office space from Huntington. Fox, who was the owner and chief executive officer of Health Essist, signed a personal guaranty of the lease. Health Essist fell behind on its rent payments. Eventually, Huntington filed an…