The plaintiff investor advanced funds through three private mortgage loans totaling $130,000 to a borrower who subsequently defaulted.
The plaintiff discontinued the action against the borrower after being unable to locate and serve her and instead pursued guarantors who had executed a written guarantee of the mortgage debt.
The defendants attempted to resile from admissions in their pleadings that they had signed the guarantee and argued the documents should not bind them.
The court rejected their evidence, finding they knowingly executed the guarantee in exchange for the plaintiff forbearing from immediate enforcement of the mortgage debt.
Judgment was granted enforcing the guarantee and awarding the principal, contractual interest under the mortgages, and costs including a substantial indemnity component due to litigation misconduct.
