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In a unanimous decision, the Supreme Court of Cyprus has dismissed the appeal of two individuals contesting a ruling by the Paphos District Court, which held them liable for €30,244.32 plus interest and costs, as guarantors of a business loan granted by Laiki Bank in 2002.
The case dates back to a guarantee agreement the appellants signed for a particular company, which stipulated an unlimited guarantee for "all obligations of the principal debtor (the company) whether present or future, whether they are or will become due or whether they are personal or joint and several with any person or persons under the guarantee of a third person or persons and whether they are direct or indirect."
Marfin Popular Bank Public Co. Ltd initiated legal action against the guarantors in 2010, and the original judgment was issued in 2016, after the relevant portfolio was acquired by the Bank of Cyprus.
In their appeal, the guarantors argued that the District Court had improperly assessed the testimony and facts of the case. However, the Supreme Court found that the evidence presented by the Bank of Cyprus, including testimonies from three witnesses, was credible. It was confirmed that the documentation in the Bank of Cyprus’s possession was the same as that originally held by Laiki Bank and Marfin.
Moreover, the appellants did not challenge the accuracy of the charges detailed in the account statement.
"All grounds of appeal are unfounded. The judgment of the trial court is affirmed as correct. The appeal is dismissed, with costs of €3,500, plus VAT, if any, against the appellants," the Supreme Court concluded.
The decision underscores the legal responsibility of guarantors in business loan agreements and the importance of understanding the extent of such guarantees.
