Charles Crews (Dexter Ridge Shopping Center) vs. Michael Cahhal, et al.

This is a breach of contract case. The plaintiff developer leased space to a corporation for use as a restaurant. The shareholders of the corporation entered into a separate agreement with the developer to guarantee the lease. The corporation defaulted on the lease. The developer filed unlawful detainer warrants in general sessions court against both the corporation and the shareholder guarantors. Thereafter, the corporation filed for bankruptcy, thus staying the general sessions court proceedings as to the corporation. The general sessions court dismissed the entire action, including the claim against the guarantors, because the bankruptcy stay prevented the developer from recovering possession. This decision was appealed to circuit court. Meanwhile, the developer had filed a second lawsuit for breach of contract against the guarantors. The second lawsuit was consolidated with the appeal of the unlawful detainer action pending in circuit court. After a trial, the circuit court affirmed the dismissal of the unlawful detainer action and dismissed the breach of contract action based on the doctrine of former suit pending. This appeal followed. We reverse and remand, finding, inter alia, that the action in general sessions court against the guarantors was for breach of contract and, therefore, recovery of possession of the premises was not required in order to obtain an award of damages against the guarantors.