WPC' /# UN % 0(w@)4i} 0@ 0l 0D8 0J| 0T 0^ 0hx 0r 0|R 0 0T 1u 0dY U> B) B$ D3A DCt AM U* . 4 v~ vi AQ< 0DS 0D D/ B HP LaserJet 4SiHPPCL5MS,,,,,,0nLH(hH  Z 6Times New Roman RegularX($ >U?@ABCDEFӀRB\J# 4d483|xR("$    ((3$ !      0  (#$  0  2 0Indent123  2" 0Indent20 23  2, 0Indent30 0 23  26 0Indent40 0 0 23  2@ 0Indent50 0 0 0 23  2J 0Indent60 0 0 0 0 23  2T 0Indent70 0 0 0 0 0 23  2^ 0Indent80 0 0 0 0 0 0 23   ?AGMSYaioIndent0I.A.1.a.(1)(a)i)a)P 8Mac DefaultMac Default ` X<  9p`(&Times New Roman% Line 7 d d 'dxd7Border 1dd*"C << G<  9p`(Arial !  +"  $$   YYY FILED$X October28,1997CecilCrowson,Jr.$AppellateCourtClerk  !   $       Lowerystestimonywasintroducedattrialbydeposition.PtPtHH(FG(HH(d'`Styl{WP}01  HH  2$HH  Geneva  <Px443!#4$*$$*$ KK  Geneva  Geneva .,6 Geneva   ion-F Geneva  ion-F Geneva *+,-C<< CLevel 1Level 2Level 3Level 4Level 5(3$ !  ($$   1  ..' dxdP Pd ! .   \RA'\` ` pX\RA'\ @ INTHECOURTOFAPPEALSOFTENNESSEE,WESTERNSECTION@ ATJACKSON @ _______________________________________________________ ) DONALDA.FRIEDMAN , ) ShelbyCountyCircuitCourt ) No.66700T.D.̀Plaintiff/Appellant. ) )VS. ) C.A.No.02A019705CV00100*R#%"A1-j|5`  `@R ) JOHNB.LOWERY , ) )̀Defendant/Appellee. ) )______________________________________________________________________________FromtheCircuitCourtofShelbyCountyatMemphis. HonorableKayS.Robilio,Judge StewartC.Stallings ,STEWART,WILKINSONANDWILSON,Memphis,TennesseeAttorneyforPlaintiff/Appellant. ThomasLeeHinson ,Collierville,TennesseeAttorneyforDefendant/Appellee.OPINIONFILED: REVERSEDANDREMANDED  FARMER,J. CRAWFORD,P.J.,W.S. :(Concurs) HIGHERS,J. :(Concurs)  ` ` X PlaintiffDonaldA.FriedmanappealsthetrialcourtsorderwhichenteredajudgmentinfavorofDefendant/AppelleeJohnB.LoweryinthisactiononaGuaranteeAgreement.WereversethetrialcourtsjudgmentbasedonourconclusionthatLowerywasnotrelievedofhisobligationasaguarantorundertheGuaranteeAgreement. InDecember1992,Friedmanloaned$10,000toJoeCooper,whoisnotapartytothisproceeding.Theloanwasevidencedbyaninstallmentnote,whichrequiredCoopertorepaythesumof$10,000,togetherwithinterestthereonattherateofeightpercent(8%)peryear,inaccordancewiththefollowingschedule:thesumof$66.67onJanuary7,1993,andthebalanceof$10,066.67onFebruary7,1993. Friedmanlateragreedtoloan$2,500toDefendantLowery.Inconsiderationfortheloan,Loweryexecuteda GuaranteeAgreementinwhichheagreedtoguaranteethepaymentoftheCooperloan,includinginterest,toFriedman.Specifically,Loweryagreedtorepaytheloaninfullupontheoccurrenceoftwoevents:(1)Lowerysdivorcebecomingfinal;and(2)CooperfailingtopaytheloaninfullwithinfivedaysofLowerysdivorcebeingfinal. InDecember1993,FriedmanandCooperenteredintoa SettlementAgreementagreeingtoanextensionofCoopersrepaymentofthe$10,000loan.LowerydidnotobjecttotheextensionoftheCooperloanand,infact,byhisownadmission, &   ׀heparticipatedinnegotiationsbetweenFriedmanandCoopertoextendthetermoftheloan.TheSettlementAgreementextendedthetermforrepayingtheloanbyapproximatelyeightyears. Aftermakingpaymentstotalingonly$1,025,Cooperdefaultedontheloan.FriedmanthenfiledthislawsuitagainstLoweryseekingtorecoverontheGuaranteeAgreementexecutedbyLowery.Atthetimeoftrial,Lowerysdivorcewasfinal.Accordingly,bothoftheconditionsspecifiedintheGuaranteeAgreementhadoccurred. Atthetrialsconclusion,thetrialcourtenteredajudgmentinfavorofLowery.Relyingonthedecisionof BankofWaynesborov.Ghosh ,576S.W.2d759(Tenn.1979),thecourtruledthat, although[Lowery]hadguaranteedaloantoJoeCooper,thetermsoftheunderlyingobligationwererenegotiatedsuchthat[Lowery]wasrelievedofhisobligationasaguarantor. Onappeal,Friedmancontendsthatthetrialcourtsrulingwasinerror.Weagree.In BankofWaynesborov.Ghosh ,oursupremecourtheldthat8 Givenanoncommercialguarantor,whereaprincipalandcreditor, withouttheguarantorsconsent ,makeabindingagreementtoextendthetimeofpaymentbytheprincipal,theguarantorisdischargedunlessthecreditorexpresslyreserveshisrightsagainsthim. BankofWaynesboro ,576S.W.2dat762(emphasisadded)(footnoteomitted).WeconcludethattheforegoingruleoflawdoesnotapplyinthiscasebecauseLowerysowntestimonyrevealsthatheconsentedtotheextensionoftheloanbetweenFriedmanandCooper. Aguarantorisnotreleasedifheconsentstotheextensionoftime. See  TravelersIndem.Co.v.Rexnord,Inc. ,389A.2d246,248(Pa.Commw.Ct.1978); Lincolnv.TransamericaInv.Corp. ,573P.2d1316,1318(Wash.1978)(enbanc); seealso  BankofTennesseev.Collier ,1987WL6787,at*3(Tenn.App.Feb.18,1987).Theguarantorsconsentmaybegiveneitherbeforeoraftertheextensionismade,andsuchconsentneednotbeinwriting. Travelers ,389A.2dat248; Lincoln ,573P.2dat1318.Wheretheguarantorisawareoftheextensionandacquiescesinit,suchconsentwillbeinferred. Travelers ,389A.2dat248. Inthepresentcase,LowerystestimonyrevealedthathewasawarethatFriedmanandCooperwererenegotiatingtherepaymenttermsoftheloan,thatheactuallyparticipatedinsomeofthenegotiationsforextendingtheloan,andthatheneverobjectedtotheextension.Underthesecircumstances,weholdthat,asamatteroflaw,theSettlementAgreementdidnotrelieveLoweryofhisobligationasaguarantorundertheGuaranteeAgreement.&   Thetrialcourtsjudgmentisreversed'  Ԁandthiscauseremandedforfurtherproceedingsconsistentwiththisopinion.CostsofthisappealaretaxedtoAppellee,forwhichexecutionmayissueifnecessary.      ____________________________________      FARMER,J.______________________________CRAWFORD,P.J.,W.S.(Concurs)______________________________HIGHERS,J.(Concurs)