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As a subscriber you can listen to articles at work, in the car, or while you work out. Subscribe NowA coal mine superintendent failed to convince the Indiana Court of Appeals that he should not be held liable because he did not understand the contract he signed.
M & M Pump & Supply Inc., filed a lawsuit against Lily Group and its superintendent David Smith after the latter company defaulted on payment. Green Circuit Court granted summary judgment in favor of M & M and held Smith liable for $63,913.26.
Before the Court of Appeals, Smith asserted the trial court erred when it rejected his argument that he did not know he was signing a guarantee. Smith signed the credit agreement with M & M in August 2011. The contract included a provision that stated the individual who signed personally guarantees to pay M & M if Lily Group fails to pay.
The appellate panel found Smith’s mistake would not preclude summary judgment. Citing Clanton v. United Skates of America, 686 N.E.2d 896, 899-900 (Ind. Ct. App. 1997), the Court of Appeals noted a person is presumed to understand the documents he signs and cannot be released from the terms because he failed to read it.
The case is David Smith v. M & M Pump & Supply, Inc., 28A012-1502-CC-57.
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