Facts

On October 23, 2018, Balboa Capital Corporation (Balboa) entered into an agreement with Wall Street Physician PLLC (Wall Street Physicians) and Cathy Carron entitled the Equipment Financing Agreement in which Balboa agreed to fund Wall Street Physicians $196,581.19 to finance the purchase of the medical equipment. Carron agreed to personally and unconditionally guarantee the payments and obligations of Wall Street Physicians. Balboa paid the vendor the required amount, and Wall Street Physicians received the equipment. Beginning on November 21, 2018, Wall Street Physicians began making monthly payments of $4,112.14 on the 21st of each month. Wall Street Physicians and Cathy Carron could not make the full payments due to the COVID-19 pandemic and defaulted on its payments. As of March 2, 2023, Balboa was owed a total of $115,386.10. Balboa brought a lawsuit against Wall Street Physicians and Cathy Carron, alleging breach of contract, recovery of possession of personal property, and breach of guaranty.

PLAINTIFF'S CONTENTIONS: Plaintiff contended that Wall Street Physician violated the equipment financing agreement by defaulting on the payments and that Carron was liable because she personally guaranteed Wall Street Physician's performance under the agreement.

DEFENDANTS' CONTENTIONS: Defendants argued that payment was made impossible or impractical because New York City's emergency COVID-19 lockdown regulations prohibited the practice of their medical practice. Further, they contended that their performance was excused because they were frustrated by the COVID-19 pandemic, which rendered the whole value of performance worthless.

Result

The court entered judgment for plaintiff in the total amount of $206,047.