Data Sales Company v. Diamond Z Manufacturing
Arizona Court of Appeals
74 P.3d 268 (2003)
Diamond Z (defendant) guaranteed lease payments for equipment sold to Zehr Wood, expressly agreeing in the guaranty that the underlying lease could be amended, including substitution of parties, without Diamond's consent or notice; after the lease was assigned to Data Sales (plaintiff) and Zehr Wood later assigned it to a new party that defaulted and went bankrupt, Diamond argued a Restatement suretyship defense protecting against unconsented modifications was non-waivable because it was not among the specific defenses listed as waivable in Restatement § 48(1), and the trial court denied Diamond's motion for summary judgment.
Whether, under suretyship law, a guarantor may expressly or implicitly waive surety defenses in a guaranty agreement.