Supreme Court dismisses claim against guarantor for joint liability when principal debtor fails to pay bank loan.
Legislator summary
AI generatedThe Supreme Court dismissed the guarantor's claim for reimbursement from the joint debtor after the debtor failed to repay a bank loan. The guarantor, acting in their own name for a company branch, sought recovery from the principal debtor who had assumed the obligation. The court ruled that the guarantor must first pursue the principal debtor before seeking recourse from the creditor, as the debtor remains primarily liable.
Legislator headnote
AI generatedSection 10 of the Guarantee Act 1969; Section 10 of the Guarantee Act 1969: A guarantor who has fulfilled the guarantee obligation may claim reimbursement from the principal debtor, but the debtor's failure to pay does not automatically release the guarantor from liability to the creditor.
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A oli mennyt omavelkaiseen takaukseen B:n yhdistyksen erään jaoston toimintaa varten pankista omissa nimissään
ottamasta luotosta. A, joka oli velvoitettu suorittamaan luotto pankille, haki maksamansa määrät yhdistykseltä. Kysymys yhdistyksen vastuusta. (
Ks. KKO:1999:85)