Supreme Court Dismisses Untimely Loan Guaranty Action

March 2, 2023 – The Honorable James Hudson of the Supreme Court, Suffolk County has dismissed an untimely action brought to enforce $1.55 million in loan guaranties, in BW Patio, LLC v. Barnet, Index No. 202160/2022.   The case was a follow-up to a prior mortgage foreclosure action in which the underlying loans were found to have matured in 2011.  In the 2022 action, the plaintiff was seeking payment on personal guarantees, plus millions in interest.  The defendants moved to dismiss the action on several grounds, including that the action was brought beyond the six-year statute of limitations.  Justice Hudson agreed with the defendants and found that the loans matured in 2011, more than eleven years before the action was commenced on the guarantees, and that the action, having been commenced more than six years after the maturity date, was “time-barred.”  Justice Hudson rejected the plaintiff’s attempt to alter the plain meaning of the parties’ agreements through extrinsic evidence and also found the remaining claims failed to state a viable cause of action.