Castro v Peck [1998] GUSC 2; 1998 Guam 02 (7 April 1998)

IN THE SUPREME COURT OF GUAM

GERTRUDE CASTRO, ) SUPREME COURT NO. CVA97-003

) SUPERIOR COURT NO. CV0094-94

Plaintiff-Appellant, )

)

vs. )

) OPINION

ROBERT PECK, dba B.B.H.S. )

CONTRACTING, AND )

STANDARD PLYTRADE )

CORPORATION )

)

Defendant-Appellee )

)

Filed April 7, 1998

Cite as 1998 Guam 2

Appeal from the Superior Court of Guam
Argued and Submitted on 20 August 1997
Agana, Guam

Appearing for the Plaintiff-Appellant:
William C. Bischoff, Esq.
134 Chalan Santo Papa, Ste. 202
Agana, Guam 96910

Appearing for the Defendant-Appellee:
Terry E. Timblin, Esq.
Suite 501C, GCIC Bldg.
414 W. Soledad Ave.
Agana, Guam 96910

BEFORE: JANET HEALY WEEKS, Acting Chief Justice; JOAQUIN C. ARRIOLA and EDUARDO CALVO, Associate Justices.

WEEKS, J.:

[1] This is an appeal from a grant of summary judgment dismissing Plaintiff-Appellant Gertrude Castro=s (ACastro@) complaint against Defendant-Appellee Standard Plytrade Corporation (AStandard Plytrade@). The trial court determined that Standard Plytrade was exonerated from guarantor liability due to an unapproved material alteration of a construction contract guaranteed by Standard Plytrade. Based upon a review of the applicable law, the record and the briefs presented, this Court affirms the decision of the trial court for the reasons set forth below.

[2] Plaintiff-Appellant Gertrude Castro (ACastro@) contracted with Robert Peck, dba BBHS (ABBHS@), to renovate Castro=s home for $81,000.00 (the AConstruction Contract@). On 18 October 1991, Standard Plytrade, as guarantor; Castro as the obligee, and BBHS, as the principal, entered into an Indemnity and Supply Agreement under which BBHS agreed to buy all supplies needed for the Construction Contract from Standard Plytrade and to guarantee BBHS=s performance of the Construction Contract (the APerformance Guaranty@).

[3] On 6 February 1992, Castro executed a Achange order@ authorizing BBHS to install security windows at an additional cost of $2,447.20. A second Achange order@ was executed on 13 March 1992. Both resulted in an increase of the contract price. Standard Plytrade did not preapprove either one. In May of 1992, BBHS defaulted on the Construction Contract and work on Castro=