Riddle v. Lushing

In Riddle v. Lushing (1962) 203 Cal.App.2d 831, the two defendants took out a loan under the name of their partnership and also guarantied the loan as individuals. Applying principles of partnership law, the court held the guaranties were shams: "Since defendants were already primary obligors, both jointly and severally, they could not also be ... guarantors on the partnership note. The purported guaranty added nothing to the primary liability which arose when they as partners executed the note in the name of the partnership." (Id. at p. 834.)