Can Guarantors Use Their Own Negligence of Not Reading a Document to Avoid Liabilty ?
In Campco Distributors, Inc. v. Fries (1987), 42 Ohio App.3d 200, 537 N.E.2d 661, a lessor brought suit against the personal guarantors of a lease agreement. Id.
The guarantors in Campco argued the guaranty was void because, like this case, they claimed to have not read the document before signing it. Id.
The Campco court ruled the guarantors made a unilateral mistake by not reading the document and could not use their own negligence to avoid liability. Id. at 204.
The court in Campco found sufficient consideration for the guaranty because the guarantors had a 30 percent ownership interest in the company leasing the property and the guaranty was an essential part of the lease agreement. Id.