The plaintiff leasing company sued a co-lessee for a deficiency balance after a leased vehicle was not returned and was later stolen following two lease extensions.
The defendant argued he had only agreed to support the original lease financially and had not consented to the later extensions, which bore signatures found not to be his.
The court held that the defendant functioned as an accommodation surety and that the lease extensions materially varied the principal contract without his consent.
Under the law governing sureties and the lease’s entire agreement clause, such variations discharged the surety from liability.
The plaintiff’s claim was dismissed and the defendant succeeded on his counterclaim for repayment of funds withdrawn from his account after the original lease term.
