Mid-South Telecommunications Co. v. Best
This case addresses when a creditor's claim against a debt guarantor accrues under Texas law. Mid-South Telecommunications Company loaned $250,000 to VidiMedix Corporation, with Norman K. Best and Philip W. Faris, Jr. serving as guarantors. VidiMedix defaulted on the promissory note on December 31, 1999, prompting Mid-South to demand payment from the guarantors. Mid-South filed suit against Best and Faris in May 2004 for breach of contract under the guaranty. Best and Faris successfully argued that the claim was barred by the four-year statute of limitations, contending the cause of action accrued upon VidiMedix's initial default. The district court's decision granting summary judgment in favor of Best and Faris was affirmed on appeal, with the court concluding that Mid-South's claim against the guarantors accrued on December 31, 1999.