On March 28, 2022, the United States Court of Appeals for the Seventh Circuit issued an opinion affirming the district court’s order dismissing a breach-of-contract claim filed against the firm’s clients. In the underlying lawsuit, the plaintiff alleged that our clients had defaulted on a multi-million dollar promissory note and personal guaranty executed in connection with the purchase of an existing company. Under the guaranty, the client promised to be personally liable for the primary debtor’s payment obligations in the event that the primary debtor defaulted on the underlying promissory note. The plaintiff sued both the primary debtor and the personal guarantor to recover under the contracts. TDR represented both defendants.

Lead attorneys Tim Hudson and Amanda Catalano, with assistance from associate Jonathan Kim, based their arguments on a nuanced reading of complex financial documents, and we ultimately persuaded the court that the clients were not liable for anything – even they had paid nothing under the promissory note or the personal guaranty. In addition to dismissing the lawsuit, the district court also awarded attorney fees and costs to TDR’s clients.

On appeal to the Seventh Circuit, Ms. Catalano presented oral argument on behalf of our clients.  In its opinion, written by Judge Easterbrook, the Seventh Circuit affirmed the district court’s dismissal of the lawsuit in its entirety.