ARMSTRONG v. BANK OF AMERICA (2001)

Appellant/Defendant William Armstrong appeals an entry of judgment in an amount that exceeds the limit provided in his personal guaranty of a note executed by Co-Defendant NGLC to Appellee/Plaintiff Bank of America, N.A. Because we find that a court may impose against a guarantor an award of prejudgment interest that causes a judgment to exceed the stated limit of the guaranty, we affirm.

 Armstrong guaranteed payment of NGLC's note in the amount of $1,072,500.00.   When the note went into default, Bank of America sued both NGLC and Armstrong.   The trial court entered judgment for the bank in the principal amount of $1,072,500.00, plus prejudgment interest in the amount of $61,998.13 for a total award of $1,134,498.13.   Although the award of prejudgment interest in this case caused the final judgment to exceed the limit stated in Armstrong's guaranty, we hold that Florida law permits such an award.   A guarantor's total liability after litigation on the guaranteed note may exceed the stated limit where the additional amount is the result of the imposition of prejudgment interest which accrues as a matter of law.   See Alpha Elec. Supply, Inc. v. G.E. Lee Enters., Inc., 441 So.2d 698, 700 (Fla. 2d DCA 1983) (guarantors' personal guarantees limited their total liability to $30,000.00;  nevertheless, they were held liable for prejudgment interest on the liquidated claim irrespective of the limits contained in their guaranties).

Affirmed.

PER CURIAM.