BankAtlantic v. Berliner

Summary

The Florida Fourth District Court of Appeal held that a guarantor remained liable after judgments were entered against the debtor and another guarantor, even though those judgments were later satisfied through settlement. Applying the merger doctrine and the language of the continuing guaranty, the court reversed the order compelling BankAtlantic to enter a satisfaction of judgment as to Berliner.

Holdings

1. A satisfaction of judgment in favor of the principal debtor and another guarantor did not release Berliner from liability under his separate final judgment because Berliner was not a party to the settlement and his judgment did not designate him as secondarily liable.
2. When a final judgment is obtained against a guarantor and does not specify that the guarantor is secondarily liable, the guarantor’s secondary-obligor status merges into the judgment, and the guarantor remains liable as a judgment debtor.

Questions Presented

1. Whether a guarantor against whom a final judgment has been entered remains liable after the creditor files a satisfaction of judgment concerning the principal debtor and another guarantor.
2. Whether the merger doctrine makes a judgment debtor primarily and jointly and severally liable when the final judgment does not specify that the debtor is secondarily liable.
3. Whether the guaranty’s express provision preserving liability after the release of another guarantor supports continued liability.

Disposition

reversed_and_remanded