Legal Question in Business Law in Georgia

Re: Personal Guaranty

Your husband's withdrawal from the company will not affect his guarantee with the vendor. However, because the former partner indemnified him, the likely appropriate thing to do would be to bring the former partner into the suit as a third party defendant. Basically, if your husband has to pay, the former partner should reimburse him.

You will need a local business attorney to assist. Being a defendant to a law suit is serious and should not be taken lightly or taken on without representation. Plus, you will need to have the agreement containing the indemnification provision reviewed.

If you would like to discuss any issues further, please feel free to contact my office. My contact information is below. Thank you.

The foregoing is general information only, not specific legal advice. No attorney/client relation has been created or should be implied.

Re: Personal Guaranty

I agree with what Glenn said but would add a couple of things. If the company where your husband was an owner was also sued, and if the company was the guarantor, you will want to make a cross-claim against the co-defendant. If the guaranty was the former partner individually, and the individual was not named in the lawsuit, you will have to bring him in, as Glenn indicated.

The vendor does not care where the money comes from--he just wants to get paid. Often times, a plaintiff is happy to see a fight among co or cross defendants, because they are often so busy fighting each other that they sometimes neglect the proper defense of the plaintiff's claim.

In this case, a business litigation attorney is what you want.

The foregoing is general information only, not specific legal advice. No attorney/client relationship has been created or should be implied.