Lepler approached Barrie-Chivian about the possibility of loaning money to his real estate company, Russell Development, LLC. Barrie-Chivian agreed and lent the company a total of $150,000 in capital. At trial, Barrie-Chivian testified that he would not have agreed to the loans if Lepler had not promised to provide written personal guaranties. Lepler agreed to do so, but never did. Lepler/Russell Development never repaid the $150,000 loan, and Barrie-Chivian sued to recover the loss. At trial, Lepler admitted that he had promised to provide personal guaranties of the loans, but asserted that the statute of frauds barred recovery on the personal guaranties absent a writing.

CASE QUESTIONS

1. Who prevails and why?

2. Why is the statute of frauds so important in resolving this dispute?