Kolokotronis

We cannot rewrite contracts when the economy suffers a severe downturn. Sotiris Kolokotronis, stung by the crash in the real estate market, seeks to upset a judgment in favor of Central Pacific Bank’s successor, Grayl CPB, LLC. Despite signing a document entitled “Continuing Guaranty” wherein he unconditionally guaranteed to pay an amount equal to the borrower’s debt, affixing his signature over the designation “Guarantor” and filing a declaration under penalty of perjury that he understood he would be responsible to pay the borrower’s debt if it was unable to do so, Kolokotronis insists the guaranty was not a guaranty but a demand note protected by the antideficiency statutes and the one-action rule. We disagree and affirm the judgment.

FACTS

The financial world that existed in the summer of 2006, when Kolokotronis (Guarantor) signed a Continuing Guaranty related to a $17.7 million loan from Central Pacific Bank (Original Lender) to Sheldon Terrace, LLC (Borrower), had changed drastically when the loan came due in August of 2008. By April of 2008 the value of the real property securing the loan had plummeted and the Original Lender notified the Borrower and the…