Performance Food Group, Inc. v. Ariva Hospitality, Inc.

Illinois Appellate Court
Civil Court
Guarantee
Citation
Case Number: 
2020 IL App (3d) 190409
Decision Date: 
Wednesday, May 27, 2020
District: 
3d Dist.
Division/County: 
Rock Island Co.
Holding: 
Affirmed.
Justice: 
WRIGHT

Plaintiff sold food products to hotel, on a line of credit under a customer account application, which was subject to the personal guarantee of the hotel's general manager who later left his employment there. Two years later, Plaintiff filed small claims complaint against hotel (whose owner could not be located for service) and its former general manager. Former manager did not approve the purchase order in dispute. Although guarantee was of unlimited duration, court properly found that guarantee was enforceable for a reasonable amount of time but was not enforceable indefinitely. Former manager's secondary obligation was not "triggered" until hotel defaulted on its payments for food products 2 years after he left employment by hotel, and it would be unreasonable to hold him liable for this debt. (CARTER, concurring; McDADE, dissenting.)