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\fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\b\insrsid5512484\charrsid271919 IN THE SUPREME COURT OF GUAM}{\b\insrsid271919 \par }\pard \qj \li0\ri0\nowidctlpar\tqc\tx4680\faauto\rin0\lin0\itap0\pararsid271919 {\b\insrsid271919 \par }\pard \qj \fi-4320\li4320\ri0\nowidctlpar\tx-1440\faauto\rin0\lin4320\itap0\pararsid271919 {\b\insrsid5512484\charrsid271919 GERTRUDE CASTRO,\tab \tab }{\insrsid5512484\charrsid271919 )\tab SUPREME COURT NO. }{\b\insrsid5512484\charrsid271919 CVA97-003 \par }\pard \qj \fi-720\li4320\ri0\nowidctlpar\tx-1440\faauto\rin0\lin4320\itap0\pararsid271919 {\insrsid5512484\charrsid271919 )\tab SUPERIOR COURT NO. }{\b\insrsid5512484\charrsid271919 CV0094-94 \par }\pard \qj \fi-2880\li3600\ri0\nowidctlpar\tx-1440\faauto\rin0\lin3600\itap0\pararsid271919 {\insrsid5512484\charrsid271919 Plaintiff-Appellant,\tab \tab ) \par }\pard \qj \fi3600\li0\ri0\nowidctlpar\faauto\rin0\lin0\itap0\pararsid271919 {\insrsid5512484\charrsid271919 ) \par }\pard \qj \fi-2880\li3600\ri0\nowidctlpar\tx-1440\faauto\rin0\lin3600\itap0\pararsid271919 {\insrsid5512484\charrsid271919 vs.\tab \tab \tab \tab ) \par }\pard \qj \fi-720\li4320\ri0\nowidctlpar\tx-1440\faauto\rin0\lin4320\itap0\pararsid271919 {\insrsid5512484\charrsid271919 )}{\b\insrsid5512484\charrsid271919 \tab OPINION \par }\pard \qj \fi-3600\li3600\ri0\nowidctlpar\tx-1440\faauto\rin0\lin3600\itap0\pararsid271919 {\b\insrsid5512484\charrsid271919 ROBERT PECK, dba B.B.H.S.\tab }{\insrsid5512484\charrsid271919 ) \par }{\b\insrsid5512484\charrsid271919 CONTRACTING, AND\tab \tab }{\insrsid5512484\charrsid271919 ) \par }{\b\insrsid5512484\charrsid271919 STANDARD PLYTRADE\tab \tab }{\insrsid5512484\charrsid271919 ) \par }{\b\insrsid5512484\charrsid271919 CORPORATION\tab \tab \tab }{\insrsid5512484\charrsid271919 ) \par }\pard \qj \fi3600\li0\ri0\nowidctlpar\faauto\rin0\lin0\itap0\pararsid271919 {\insrsid5512484\charrsid271919 ) \par }\pard \qj \fi-2880\li3600\ri0\nowidctlpar\tx-1440\faauto\rin0\lin3600\itap0\pararsid271919 {\insrsid5512484\charrsid271919 Defendant-Appellee\tab \tab )}{\insrsid271919 \par }\pard \qj \li0\ri0\nowidctlpar\tx-1440\faauto\rin0\lin0\itap0\pararsid271919 {\ul\insrsid271919\charrsid271919 \tab \tab \tab }{\ul\insrsid271919 \tab \tab }{\ul\insrsid5512484\charrsid271919 )}{\insrsid271919\charrsid271919 \par }\pard \qj \li0\ri0\nowidctlpar\faauto\rin0\lin0\itap0\pararsid271919 {\insrsid271919\charrsid271919 \par }\pard \qc \li0\ri0\nowidctlpar\faauto\rin0\lin0\itap0\pararsid271919 {\insrsid5512484\charrsid271919 Filed April 7, 1998 \par }\pard \ql \li0\ri0\nowidctlpar\faauto\rin0\lin0\itap0\pararsid271919 {\insrsid271919 \par }\pard \qc \li0\ri0\nowidctlpar\faauto\rin0\lin0\itap0\pararsid271919 {\b\insrsid5512484\charrsid271919 Cite as 1998 Guam 2 \par }\pard \ql \li0\ri0\nowidctlpar\faauto\rin0\lin0\itap0\pararsid271919 {\insrsid271919\charrsid271919 \par }\pard \qc \li0\ri0\nowidctlpar\faauto\rin0\lin0\itap0\pararsid271919 {\insrsid5512484\charrsid271919 Appeal from the Superior Court of Guam \par Argued and Submitted on 20 August 1997 \par Agana, Guam}{\insrsid271919 \par }\pard \ql \li0\ri0\nowidctlpar\faauto\rin0\lin0\itap0\pararsid271919 {\insrsid271919 \par }\pard \qj \li0\ri0\nowidctlpar\faauto\rin0\lin0\itap0\pararsid271919 {\ul\insrsid5512484\charrsid271919 Appearing for the Plaintiff-Appellant:}{\insrsid5512484\charrsid271919 \par William C. Bischoff,}{\insrsid271919 }{\insrsid5512484\charrsid271919 Esq. \par 134 Chalan Santo Papa, Ste. 202 \par Agana, Guam 96910 \par \par }{\ul\insrsid5512484\charrsid271919 Appearing for the Defendant-Appellee:}{\insrsid5512484\charrsid271919 \par Terry E. Timblin, Esq. \par Suite 501C, GCIC Bldg. \par 414 W. Soledad Ave. \par Agana, Guam 96910 \par \par BEFORE:}{\insrsid271919 }{\insrsid5512484\charrsid271919 JANET HEALY WEEKS, Acting Chief Justice; JOAQUIN C. ARRIOLA and EDUARDO CALVO, Associate Justices. \par \par }{\b\insrsid5512484\charrsid271919 WEEKS,}{\b\insrsid271919\charrsid271919 }{\b\insrsid5512484\charrsid271919 J.: \par }{\insrsid5512484\charrsid271919 \par }{\b\insrsid5512484\charrsid271919 [1]}{\insrsid5512484\charrsid271919 \tab This is an appeal from a grant of summary judgment dismissing Plaintiff-Appellant Gertrude Castro}{\insrsid5512484\charrsid271919 {\field{\*\fldinst SYMBOL 61 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f169\fs24}}}{\insrsid5512484\charrsid271919 s (}{\insrsid5512484\charrsid271919 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f169\fs24}}}{\insrsid5512484\charrsid271919 Castro}{ \insrsid5512484\charrsid271919 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f169\fs24}}}{\insrsid5512484\charrsid271919 ) complaint against Defendant-Appellee Standard Plytrade Corporation (}{\insrsid5512484\charrsid271919 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f169\fs24}}}{\insrsid5512484\charrsid271919 Standard Plytrade}{\insrsid5512484\charrsid271919 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f169\fs24}}}{ \insrsid5512484\charrsid271919 ).}{\insrsid271919 }{\insrsid5512484\charrsid271919 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.}{\insrsid271919 }{\insrsid5512484\charrsid271919 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. \par }\pard\plain \s16\qj \li0\ri0\nowidctlpar\tqc\tx4680\faauto\rin0\lin0\itap0\pararsid271919 \fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\insrsid5512484\charrsid271919 \par }\pard\plain \qj \li0\ri0\nowidctlpar\faauto\rin0\lin0\itap0\pararsid271919 \fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\b\insrsid5512484\charrsid271919 [2]}{\insrsid5512484\charrsid271919 \tab Plaintiff-Appellant Gertrude Castro (}{ \insrsid5512484\charrsid271919 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f169\fs24}}}{\insrsid5512484\charrsid271919 Castro}{\insrsid5512484\charrsid271919 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f169\fs24}}}{\insrsid5512484\charrsid271919 ) contracted with Robert Peck, dba BBHS (}{\insrsid5512484\charrsid271919 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f169\fs24}}}{\insrsid5512484\charrsid271919 BBHS}{\insrsid5512484\charrsid271919 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f169\fs24}}}{\insrsid5512484\charrsid271919 ), to renovate Castro}{\insrsid5512484\charrsid271919 {\field{\*\fldinst SYMBOL 61 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f169\fs24}}}{\insrsid5512484\charrsid271919 s home for $81,000.00}{\insrsid271919 }{\insrsid5512484\charrsid271919 (the }{\insrsid5512484\charrsid271919 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f169\fs24}}}{\insrsid5512484\charrsid271919 Construction Contract}{\insrsid5512484\charrsid271919 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f169\fs24}}}{\insrsid5512484\charrsid271919 ).}{\insrsid271919 } {\insrsid5512484\charrsid271919 On 18 October 1991, Standard Plytrade, as guarantor; Castro as the obligee, and BBHS, as the principal, entered in to 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}{\insrsid5512484\charrsid271919 {\field{\*\fldinst SYMBOL 61 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f169\fs24}}}{\insrsid5512484\charrsid271919 s performance of the Construction Contract (the }{\insrsid5512484\charrsid271919 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f169\fs24}}}{ \insrsid5512484\charrsid271919 Performance Guaranty}{\insrsid5512484\charrsid271919 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f169\fs24}}}{\insrsid5512484\charrsid271919 ).}{\insrsid5512484 \par }{\insrsid271919\charrsid271919 \par }{\b\insrsid5512484\charrsid271919 [3]}{\insrsid5512484\charrsid271919 \tab On 6 February 1992, Castro executed a }{\insrsid5512484\charrsid271919 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f169\fs24}}}{ \insrsid5512484\charrsid271919 change order}{\insrsid5512484\charrsid271919 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f169\fs24}}}{\insrsid5512484\charrsid271919 authorizing BBHS to install security windows at an additional cost of $2,447.20.}{\insrsid271919 }{\insrsid5512484\charrsid271919 A second }{\insrsid5512484\charrsid271919 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt \f169\fs24}}}{\insrsid5512484\charrsid271919 change order}{\insrsid5512484\charrsid271919 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f169\fs24}}}{\insrsid5512484\charrsid271919 was executed on 13 March 1992.}{ \insrsid271919 }{\insrsid5512484\charrsid271919 Both resulted in an increase of the contract price.}{\insrsid271919 }{\insrsid5512484\charrsid271919 Standard Plytrade did not preapprove either one. In May of 1992, BBHS defaulted on the Construction Contract and work on Castro}{\insrsid5512484\charrsid271919 {\field{\*\fldinst SYMBOL 61 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f169\fs24}}}{ \insrsid5512484\charrsid271919 s house ceased. Castro demanded that Standard Plytrade comply with the Performance Guaranty and complete the Construction Contract, including the alterations provided by the change orders.}{\insrsid271919 }{ \insrsid5512484\charrsid271919 Standard Plytrade refused to finish the project and Castro filed suit against both BBHS and Standard Plytrade. The trial cour t subsequently dismissed the suit against Standard Plytrade based upon the defense of exoneration and the present appeal followed.}{\insrsid5512484 \par }{\insrsid271919\charrsid271919 \par }\pard \qc \li0\ri0\nowidctlpar\tqc\tx4680\faauto\rin0\lin0\itap0\pararsid271919 {\b\insrsid5512484\charrsid271919 II. \par }\pard \ql \li0\ri0\nowidctlpar\tqc\tx4680\faauto\rin0\lin0\itap0\pararsid271919 {\insrsid271919\charrsid271919 \par }\pard \qj \li0\ri0\nowidctlpar\faauto\rin0\lin0\itap0\pararsid271919 {\b\insrsid5512484\charrsid271919 [4]}{\insrsid5512484\charrsid271919 \tab This Court has jurisdiction over the final judgment entered by the Superior Court under 48 U.S.C. }{ \insrsid5512484\charrsid271919 {\field{\*\fldinst SYMBOL 39 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f169\fs24}}}{\insrsid5512484\charrsid271919 1424-3(d) and 7 GCA }{\insrsid5512484\charrsid271919 {\field{\*\fldinst SYMBOL 39 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f169\fs24}}{\field{\*\fldinst SYMBOL 39 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f169\fs24}}}{\insrsid5512484\charrsid271919 3107 and 3108.}{\insrsid271919 }{\insrsid5512484\charrsid271919 This Court will conduct a de novo review of the trial court}{\insrsid5512484\charrsid271919 {\field{\*\fldinst SYMBOL 61 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f169\fs24}}}{\insrsid5512484\charrsid271919 s decision to grant summary judgment.}{ \insrsid271919 }{\i\insrsid5512484\charrsid271919 Iizuka Corp. v. Kawasho Int}{\i\insrsid5512484\charrsid271919 {\field{\*\fldinst SYMBOL 61 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f169\fs24}}}{\i\insrsid5512484\charrsid271919 l Inc., et}{ \insrsid5512484\charrsid271919 al., Guam S.Ct. Case No. CVA 96-009 (June 24, 1997).}{\insrsid271919 }{\insrsid5512484\charrsid271919 Under Rule 56 of the Guam Rules of Civil Procedure, summary judgment is proper }{\insrsid5512484\charrsid271919 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f169\fs24}}}{\insrsid5512484\charrsid271919 if the pleadings, depositions, answers to interrogatories, and admissions on file, together with the affidavits, if any, show that there is no genuine issue as to any material fact and that the moving party is entitled to judgment as a matter of law.}{ \insrsid5512484\charrsid271919 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f169\fs24}}}{\insrsid271919 }{\insrsid5512484\charrsid271919 The court must view the evidence and draw inferences in the light most favorable to the nonmovant.}{\insrsid271919 }{\i\insrsid5512484\charrsid271919 E.E.O.C. v. Local 350, Plumbers and Pipefitters}{\insrsid5512484\charrsid271919 , 982 F.2d 1305, 1307 (9 }{\super\insrsid5512484\charrsid271919 th}{\insrsid5512484\charrsid271919 Cir. 1992).}{\insrsid271919 }{\insrsid5512484\charrsid271919 The }{\insrsid5512484\charrsid271919 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt \f169\fs24}}}{\insrsid5512484\charrsid271919 court}{\insrsid5512484\charrsid271919 {\field{\*\fldinst SYMBOL 61 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f169\fs24}}}{\insrsid5512484\charrsid271919 s ultimate inquiry is to determine whether the }{ \insrsid5512484\charrsid271919 {\field{\*\fldinst SYMBOL 62 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f169\fs24}}}{\insrsid5512484\charrsid271919 specific facts}{\insrsid5512484\charrsid271919 {\field{\*\fldinst SYMBOL 61 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f169\fs24}}}{\insrsid5512484\charrsid271919 set forth by the nonmoving party , coupled with undisputed background or contextual facts, are such that a rational or reasonable jury might return a verdict in its favor based on that evidence.}{\insrsid5512484\charrsid271919 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f169\fs24}}}{\insrsid271919 }{\i\insrsid5512484\charrsid271919 T.W. Electrical}{\i\insrsid271919 }{\i\insrsid5512484\charrsid271919 Inc. v. Pac. Electrical Contractors Ass}{\i\insrsid5512484\charrsid271919 {\field{\*\fldinst SYMBOL 61 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f169\fs24}}}{\i\insrsid5512484\charrsid271919 n}{\insrsid5512484\charrsid271919 , 809 F.2d 626, 631 (9}{\super\insrsid5512484\charrsid271919 th}{\insrsid5512484\charrsid271919 Cir. 1987).}{\insrsid5512484 \par }{\insrsid271919\charrsid271919 \par }{\b\insrsid5512484\charrsid271919 [5]}{\insrsid5512484\charrsid271919 \tab There is no material dispute as to the existence of an unapproved material alteration to the Construction Contract.}{\insrsid271919 }{\insrsid5512484\charrsid271919 The issues presented upon appeal are:}{\insrsid271919 }{\insrsid5512484\charrsid271919 (1) whether preapproval by the surety of a material alteration to the Construction Contract is required; and (2) whether an unapproved material alteration to the Construction Contract exonerates Standard Plytrade from liability.}{\insrsid5512484 \par }{\insrsid271919\charrsid271919 \par }{\b\insrsid5512484\charrsid271919 [6]}{\insrsid5512484\charrsid271919 \tab Appellant}{\insrsid271919 }{\insrsid5512484\charrsid271919 Castro concedes the 6 February 1992 change order in the amount of $2,447.20 was a material alteration of the Construction Contract}{\cs15\super\insrsid5512484\charrsid271919 \chftn {\footnote \pard\plain \qj \fi720\li0\ri0\sa240\sl480\slmult1 \nowidctlpar\faauto\rin0\lin0\itap0 \fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\cs15\super\insrsid5512484 \chftn }{\fs20\insrsid5512484 The Appellant also agreed that a material alteration prejudices the surety.}}}{ \insrsid5512484\charrsid271919 ; nonetheless, she contends: (1) the owner was not required to seek prior written approval of the change order from the surety; (2) an ambiguity exists as to the extent of the exoneration available to the surety; and (3) California case law should not be relied upon in determining the issue of exoneration.}{\insrsid5512484 \par }{\insrsid271919\charrsid271919 \par }{\b\insrsid5512484\charrsid271919 [7]}{\insrsid5512484\charrsid271919 \tab Appellee Standard Plytrade argues: (1) the Performance Guaranty requires prior }{\insrsid5512484\charrsid271919 approval}{\insrsid5512484\charrsid271919 of}{\insrsid271919 }{ \insrsid5512484\charrsid271919 alterations and that any alteration is a material alteration resulting in complete exoneration of}{\insrsid271919 }{\insrsid5512484\charrsid271919 Standard Plytrade and}{\insrsid271919 }{\insrsid5512484\charrsid271919 (2) the $2,447.20 change order materially altered the Construction Contract. Appellee also asserts that}{\insrsid271919 }{\i\insrsid5512484\charrsid271919 Roberto v. Aguon,}{\insrsid5512484\charrsid271919 519 F.2d 754 (9}{ \super\insrsid5512484\charrsid271919 th}{\insrsid5512484\charrsid271919 Cir. 1975) remains controlling law and California cases interpreting California surety law should govern the decision of this case}{\cs15\super\insrsid5512484\charrsid271919 \chftn {\footnote \pard\plain \qj \fi720\li0\ri0\sl480\slmult1\nowidctlpar\faauto\rin0\lin0\itap0 \fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\cs15\super\insrsid5512484 \chftn }{\insrsid5512484 \par }\pard \qj \fi720\li0\ri0\sa240\nowidctlpar\faauto\rin0\lin0\itap0 {\cs15\super\insrsid5512484 \chftn }{\fs20\insrsid5512484 This case provides a poor vehicle to consider }{\i\fs20\insrsid5512484 Roberto v. Aguon}{\i\fs20\insrsid5512484 {\field{\*\fldinst SYMBOL 61 \\f "WP TypographicSymbols" \\s 10}{\fldrslt\f169\fs20}}}{\i\fs20\insrsid5512484 s}{\fs20\insrsid5512484 vitality as precedent. Appellant}{\fs20\insrsid5512484 {\field{\*\fldinst SYMBOL 61 \\f "WP TypographicSymbols" \\s 10}{\fldrslt\f169\fs20}}}{\fs20\insrsid5512484 s concessions, that the changes ordered amounted to a material alteration of the Construction Contract and that a material alteration prejudices the surety, in conjunction with the terms of the contractual agreements requiring complete exoneration, would compel us to the legal conclusion required by California}{\fs20\insrsid5512484 {\field{\*\fldinst SYMBOL 61 \\f "WP TypographicSymbols" \\s 10}{\fldrslt\f169\fs20}}}{\fs20\insrsid5512484 s case law even if we were to find that it was not forced upon us by }{\i\fs20\insrsid5512484 Roberto}{\fs20\insrsid5512484 .}{\insrsid5512484 }} }{\insrsid5512484\charrsid271919 .}{\insrsid5512484 \par }{\insrsid271919\charrsid271919 \par }\pard \qc \li0\ri0\nowidctlpar\tqc\tx4680\faauto\rin0\lin0\itap0\pararsid271919 {\b\insrsid5512484\charrsid271919 III. \par }\pard \qj \li0\ri0\nowidctlpar\tqc\tx4680\faauto\rin0\lin0\itap0\pararsid271919 {\insrsid271919\charrsid271919 \par }\pard \qj \li0\ri0\nowidctlpar\faauto\rin0\lin0\itap0\pararsid271919 {\b\insrsid5512484\charrsid271919 [8]}{\insrsid5512484\charrsid271919 \tab The statutory provisions allowing for the complete or }{\i\insrsid5512484\charrsid271919 pro tanto}{ \insrsid5512484\charrsid271919 exoneration of a surety are set forth at 18 GCA }{\insrsid5512484\charrsid271919 {\field{\*\fldinst SYMBOL 39 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f169\fs24}}}{\insrsid5512484\charrsid271919 32205(1)-(3) and are almost identical to early California provisions. Furthermore, the contractual provisions of the Construction Contract and Performance Guaranty also set forth the grounds for exoneration of the surety}{\insrsid5512484\charrsid271919 {\field{\*\fldinst SYMBOL 61 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f169\fs24}}}{\insrsid5512484\charrsid271919 s obligation.}{\insrsid5512484 \par }{\insrsid271919\charrsid271919 \par }\pard \qj \fi720\li0\ri0\nowidctlpar\faauto\rin0\lin0\itap0\pararsid271919 {\insrsid5512484\charrsid271919 18 GCA }{\insrsid5512484\charrsid271919 {\field{\*\fldinst SYMBOL 39 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f169\fs24}}}{ \insrsid5512484\charrsid271919 32205 provides for the exoneration of a surety as follows: \par }\pard \qj \li0\ri0\nowidctlpar\tx-1440\faauto\rin0\lin0\itap0\pararsid271919 {\insrsid271919 \par }\pard \qj \fi-720\li2160\ri0\nowidctlpar\tx-1440\faauto\rin0\lin2160\itap0\pararsid271919 {\insrsid5512484\charrsid271919 1.\tab In a like manner with a guarantor}{\cs15\super\insrsid5512484\charrsid271919 \chftn {\footnote \pard\plain \qj \fi720\li0\ri0\sa240\nowidctlpar\faauto\rin0\lin0\itap0 \fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\cs15\super\insrsid5512484 \chftn }{\fs20\insrsid5512484 {\field{\*\fldinst SYMBOL 39 \\f "WP TypographicSymbols" \\s 10}{\fldrslt \f169\fs20}}}{\fs20\insrsid5512484 32205(1) applies where the principal}{\fs20\insrsid5512484 {\field{\*\fldinst SYMBOL 61 \\f "WP TypographicSymbols" \\s 10}{\fldrslt\f169\fs20}}}{\fs20\insrsid5512484 s obligation is changed by an unapproved material alteration, regardless of prejudice suffered. }{\i\fs20\insrsid5512484 See e.g., Alcatraz Masonic Hall Ass}{\i\fs20\insrsid5512484 {\field{\*\fldinst SYMBOL 61 \\f "WP TypographicSymbols" \\s 10}{\fldrslt \f169\fs20}}}{\i\fs20\insrsid5512484 n v. U.S. Fidelity & Guaranty Co.}{\fs20\insrsid5512484 , 85 P. 156 (Cal. Ct. App.. 1906) (alteration resulting in a $315 increase in contractual cost is material enough to warrant complete exoneration.)}{ \insrsid5512484 }}}{\insrsid5512484\charrsid271919 ; \par }\pard \qj \li0\ri0\nowidctlpar\faauto\rin0\lin0\itap0\pararsid271919 {\insrsid5512484\charrsid271919 \par {\pntext\pard\plain\s17 \insrsid5512484\charrsid271919 \hich\af0\dbch\af0\loch\f0 2.\tab}}\pard\plain \s17\qj \fi-720\li2160\ri0\nowidctlpar\tx-1440\jclisttab\tx2160{\*\pn \pnlvlbody\ilvl0\ls2\pnrnot0\pndec\pnstart2\pnindent360\pnsp120 {\pntxta .}} \faauto\ls2\rin0\lin2160\itap0\pararsid271919 \fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\insrsid5512484\charrsid271919 To the extent to which he is prejudiced by any act of the credito r which would naturally prove injurious to the remedies of the surety or inconsistent with his rights, or which lessens his security}{\cs15\super\insrsid5512484\charrsid271919 \chftn {\footnote \pard\plain \qj \fi720\li0\ri0\sa240\nowidctlpar{\*\pn \pnlvlcont\ilvl0\ls0\pnrnot0\pndec }\faauto\rin0\lin0\itap0 \fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\cs15\super\insrsid5512484 \chftn }{\fs20\insrsid5512484 {\field{\*\fldinst SYMBOL 39 \\f "WP TypographicSymbols" \\s 10}{\fldrslt \f169\fs20}}}{\fs20\insrsid5512484 32205(2) applies in those situations where there is an injurious act by the creditor, for example, in the case involving a premature payment to a subcontractor. }{\i\fs20\insrsid5512484 See, e.g., Burr v. Gardella}{ \fs20\insrsid5512484 200 P. 493 (Cal. Ct. App.. 1921) (premature payments result in }{\i\fs20\insrsid5512484 pro tanto}{\fs20\insrsid5512484 exoneration); }{\i\fs20\insrsid5512484 see also}{\fs20\insrsid5512484 , The American Ins. Company v. Heritage Const r. Corp., 268 F.Supp. 336 (N.D. Cal. 1965) (Under California law, a premature payment is not an alteration of the contract, but an act injurious to the rights of the surety and exoneration is limited to the extent of the injury.).}}}{ \insrsid5512484\charrsid271919 ; or, \par }\pard\plain \qj \li0\ri0\nowidctlpar{\*\pn \pnlvlcont\ilvl0\ls0\pnrnot0\pndec }\faauto\rin0\lin0\itap0\pararsid271919 \fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\insrsid5512484\charrsid271919 \par {\pntext\pard\plain\s17 \insrsid5512484\charrsid271919 \hich\af0\dbch\af0\loch\f0 3.\tab}}\pard\plain \s17\qj \fi-720\li2160\ri0\nowidctlpar\tx-1440\jclisttab\tx2160{\*\pn \pnlvlbody\ilvl0\ls2\pnrnot0\pndec\pnstart2\pnindent360\pnsp120 {\pntxta .}} \faauto\ls2\rin0\lin2160\itap0\pararsid271919 \fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\insrsid5512484\charrsid271919 To the extent to which he is prejudiced by an omission of the creditor to do anything when required by the surety, which it is his duty to do}{\cs15\super\insrsid5512484\charrsid271919 \chftn {\footnote \pard\plain \qj \fi720\li0\ri0\sa240\nowidctlpar\faauto\rin0\lin0\itap0 \fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\cs15\super\insrsid5512484 \chftn }{\fs20\insrsid5512484 {\field{\*\fldinst SYMBOL 39 \\f "WP TypographicSymbols" \\s 10}{\fldrslt \f169\fs20}}}{\fs20\insrsid5512484 32205(3) is applicable where the creditor has a duty to act and fails to do so. }{\i\fs20\insrsid5512484 See, e.g., Fuqua v. Tulsa Masonic Bldg Ass}{\i\fs20\insrsid5512484 {\field{\*\fldinst SYMBOL 61 \\f "WP TypographicSymbols" \\s 10}{\fldrslt\f169\fs20}}}{\i\fs20\insrsid5512484 n}{\fs20\insrsid5512484 , 263 P. 660 (Okla. 1928) (failure to withhold percentage of value of work done is an omission which results in }{\i\fs20\insrsid5512484 pro tanto}{ \fs20\insrsid5512484 exoneration). }}}{\insrsid5512484\charrsid271919 .}{\insrsid5512484 \par }\pard \s17\qj \li0\ri0\nowidctlpar\tx-1440\faauto\rin0\lin0\itap0\pararsid271919 {\insrsid271919\charrsid271919 \par }\pard\plain \qj \li0\ri0\nowidctlpar\faauto\rin0\lin0\itap0\pararsid271919 \fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\insrsid5512484\charrsid271919 18 GCA }{\insrsid5512484\charrsid271919 {\field{\*\fldinst SYMBOL 39 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f169\fs24}}}{\insrsid5512484\charrsid271919 31601 provides for the complete exoneration of a guarantor and states: \par }\pard \qj \li0\ri1440\nowidctlpar\faauto\rin1440\lin0\itap0\pararsid271919 {\insrsid271919 \par }\pard \qj \li1440\ri1440\nowidctlpar\faauto\rin1440\lin1440\itap0\pararsid271919 {\insrsid5512484\charrsid271919 A guarantor is exonerated, except so far as he may be indemnified by the principal, if by any act of the creditor, without the consent of the \par guarantor, the original obligation of the principal is altered in any respect, or the remedies or rights of the creditor against the principal, in respect thereto are in any way impaired or suspended. \par }\pard \qj \li0\ri0\nowidctlpar\faauto\rin0\lin0\itap0\pararsid271919 {\insrsid5512484\charrsid271919 \par 18 GCA }{\insrsid5512484\charrsid271919 {\field{\*\fldinst SYMBOL 39 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f169\fs24}}}{\insrsid5512484\charrsid271919 31601, formerly Guam Civil Code }{\insrsid5512484\charrsid271919 {\field{\*\fldinst SYMBOL 39 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f169\fs24}}}{\insrsid5512484\charrsid271919 2819, was modeled after California Civil Code }{\insrsid5512484\charrsid271919 {\field{\*\fldinst SYMBOL 39 \\f "WP TypographicSymbols" \\s 12}{\fldrslt \f169\fs24}}}{\insrsid5512484\charrsid271919 2819 and operates to completely exonerate a surety where a material alteration was made to the obligation of the principal.}{\insrsid271919 }{\i\insrsid5512484\charrsid271919 See}{ \insrsid5512484\charrsid271919 , }{\i\insrsid5512484\charrsid271919 Alcatraz,}{\insrsid5512484\charrsid271919 85 P. 156; }{\i\insrsid5512484\charrsid271919 First Congregational Church of Christ in Corona v. Lowrey}{\insrsid5512484\charrsid271919 , (Cal. 1917), 165 P. 440;}{\insrsid271919 }{\i\insrsid5512484\charrsid271919 Michelin Tire Co. v. Bentel,}{\insrsid5512484\charrsid271919 193 P. 770, 773 (Cal. 1920); }{\i\insrsid5512484\charrsid271919 People v. Fidelity & Deposit Co. Of Maryland}{ \insrsid5512484\charrsid271919 , 82 P.2d 495 (Cal. Ct. App.. 1938); }{\i\insrsid5512484\charrsid271919 Verdugo Highlands, Inc. v. Security Ins. Co. of New Haven}{\insrsid5512484\charrsid271919 , 240 CA.2d 527 (Cal. Ct. App. 1966); }{ \i\insrsid5512484\charrsid271919 Texaco Refining & Marketing v. Aetna Cas. & Sur. Co. Inc.,}{\insrsid5512484\charrsid271919 895 F.2d 637 (9}{\super\insrsid5512484\charrsid271919 th}{\insrsid5512484\charrsid271919 Cir. 1990).}{\insrsid271919 }{ \insrsid5512484\charrsid271919 As stated in }{\i\insrsid5512484\charrsid271919 Alcatraz,}{\insrsid5512484\charrsid271919 :}{\insrsid5512484 \par }{\insrsid271919\charrsid271919 \par }\pard \qj \li1440\ri1440\nowidctlpar\faauto\rin1440\lin1440\itap0\pararsid271919 {\insrsid5512484\charrsid271919 There is no principle of law better settled than that a surety has the right to stand on the very terms of his contract, and that any alteration in the terms of the principal}{\insrsid5512484\charrsid271919 {\field{\*\fldinst SYMBOL 61 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f169\fs24}}}{\insrsid5512484\charrsid271919 s contract, made by the parties thereto without his assent, will have the effect to discharge him of all liability.}{\insrsid271919 }{\insrsid5512484\charrsid271919 By such alteration the contract ceases to be the one for which he became surety, and the extent of such alteration, or whether his liability will be increased or diminished thereby, is immaterial.}{\insrsid5512484 \par }\pard \qj \li0\ri1440\nowidctlpar\faauto\rin1440\lin0\itap0\pararsid271919 {\insrsid271919\charrsid271919 \par }\pard \qj \li0\ri0\nowidctlpar\faauto\rin0\lin0\itap0\pararsid271919 {\insrsid271919 85 P.2d at 157.}{\insrsid5512484 \par }{\insrsid271919\charrsid271919 \par }{\b\insrsid5512484\charrsid271919 [9]}{\insrsid5512484\charrsid271919 \tab The plain language of 18 GCA }{\insrsid5512484\charrsid271919 {\field{\*\fldinst SYMBOL 39 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f169\fs24}}}{ \insrsid5512484\charrsid271919 31601 permits exoneration when the original obligation of the guarantor is altered in any respect.}{\insrsid271919 }{\insrsid5512484\charrsid271919 This reading is supported by California case authority.}{\insrsid271919 } {\insrsid5512484\charrsid271919 Although California courts have imputed a requirement that such alterations be material,}{\insrsid271919 }{\insrsid5512484\charrsid271919 increases in obligations by $315.00 or $577.35, respectively,}{\insrsid271919 }{ \insrsid5512484\charrsid271919 have been held to be sufficiently material to warrant exoneration of the guarantor.}{\insrsid271919 }{\i\insrsid5512484\charrsid271919 See}{\insrsid5512484\charrsid271919 , }{\i\insrsid5512484\charrsid271919 Alcatraz, }{ \insrsid5512484\charrsid271919 85 P. 156;}{\insrsid271919 }{\i\insrsid5512484\charrsid271919 Lowrey}{\insrsid5512484\charrsid271919 , 165 P. 440.}{\insrsid5512484 \par }{\insrsid271919\charrsid271919 \par }{\b\insrsid5512484\charrsid271919 [10]}{\insrsid5512484\charrsid271919 \tab In }{\i\insrsid5512484\charrsid271919 Alcatraz}{\insrsid5512484\charrsid271919 , the owner and contractor entered into a $16,300.00 construction contract which was bonded by a surety company.}{\insrsid271919 }{\insrsid5512484\charrsid271919 85 P. at 156.}{\insrsid271919 }{\insrsid5512484\charrsid271919 The owner and contractor subsequently agreed to an alteration of the construction contract which increased the total cost by $315.00.}{\insrsid271919 }{\i\insrsid5512484\charrsid271919 Id. }{\insrsid5512484\charrsid271919 at 157. The surety was not notified of the changes and the trial court entered a judgment completely exonerating the surety due to the unapproved change.}{\i\insrsid271919 }{\i\insrsid5512484\charrsid271919 Id.}{\insrsid5512484\charrsid271919 at 158.}{ \insrsid5512484 \par }{\insrsid271919\charrsid271919 \par }{\b\insrsid5512484\charrsid271919 [11]}{\insrsid5512484\charrsid271919 \tab In }{\i\insrsid5512484\charrsid271919 Lowrey}{\insrsid5512484\charrsid271919 , the California Supreme Court determined that changes increasing a construction contract by over $500.00 was material and that complete exoneration of the surety was justified. 165 P. at 440.}{\insrsid271919 }{\insrsid5512484\charrsid271919 In that case, the California Supreme Court reiterated that no injury or prejudice to the surety needs to be established.}{\insrsid271919 }{\i\insrsid5512484\charrsid271919 Id}{\insrsid5512484\charrsid271919 . at 441.}{\insrsid271919 }{ \insrsid5512484\charrsid271919 The Court refused to conduct a review of decisions from o}{\insrsid271919 ther jurisdictions noting that:}{\insrsid5512484 \par }{\insrsid271919\charrsid271919 \par }\pard \qj \li1440\ri1440\nowidctlpar\faauto\rin1440\lin1440\itap0\pararsid271919 {\insrsid5512484\charrsid271919 It would serve no profitable purpose to analyze these decisions, nor to search the laws of th e states which have rendered them to determine whether or not the courts were, as this court is, bound by positive statutory declaration upon the subject, for in view of our own Code provisions such a discussion could have no value. . . . Our Code speaks w ith absolute finality upon the subject. . . .Our decisions construing these sections uniformly hold that, if there has been such a change in the contract in any (material) respect, the inquiry there ends and the guarantor is exonerated, and that it is not a subject of inquiry whether the alteration has or has not been to his injury.}{\insrsid271919 }{\i\insrsid5512484\charrsid271919 \par }\pard \qj \li0\ri0\nowidctlpar\faauto\rin0\lin0\itap0\pararsid271919 {\insrsid5512484\charrsid271919 \par }{\i\insrsid5512484\charrsid271919 Id.}{\insrsid271919 }{\insrsid5512484\charrsid271919 The Appellant cites several cases in support of their argument that complete exoneration should not be allowed.}{\insrsid271919 }{\insrsid5512484\charrsid271919 However such cases do not involve a material alteration of the principal}{\insrsid5512484\charrsid271919 {\field{\*\fldinst SYMBOL 61 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f169\fs24}}}{\insrsid5512484\charrsid271919 s obligation (governed by 18 GCA }{\insrsid5512484\charrsid271919 {\field{\*\fldinst SYMBOL 39 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f169\fs24}}}{\insrsid5512484\charrsid271919 31601), but instead, relate to acts (}{\insrsid5512484\charrsid271919 {\field{\*\fldinst SYMBOL 39 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f169\fs24}}}{\insrsid5512484\charrsid271919 32205(2)) or omissions (}{\insrsid5512484\charrsid271919 {\field{\*\fldinst SYMBOL 39 \\f "WP TypographicSymbols" \\s 12}{\fldrslt \f169\fs24}}}{\insrsid5512484\charrsid271919 32205(3)) of the creditor which cause prejudice or harm to the surety. }{\i\insrsid5512484\charrsid271919 See, Gibbs v. Hartford Acc.}{\i\insrsid271919 }{\i\insrsid5512484\charrsid271919 & Indem. Co.}{ \insrsid5512484\charrsid271919 , 62 So.2d 599 (Fla. 1952); }{\i\insrsid5512484\charrsid271919 Talbert v. Bounds & Allen}{\insrsid5512484\charrsid271919 , 123 So.2d 815 (La. Ct. App.}{\insrsid271919 }{\insrsid5512484\charrsid271919 1960); }{ \i\insrsid5512484\charrsid271919 Metropolitan Casualty Ins. Co. of New York v. Koelling}{\insrsid5512484\charrsid271919 , 57 So.2d 562 (Miss. 1952); }{\i\insrsid5512484\charrsid271919 Corporation of President of Church of Jesus Christ of Latter Day Saints v. Hartford Acc. & Indem. Co.}{\insrsid5512484\charrsid271919 , 96 P.2d 736 (Utah 1939).}{\insrsid271919 }{\insrsid5512484\charrsid271919 In those situations which involve acts or omissions, the surety is exonerated, }{\i\insrsid5512484\charrsid271919 pro tanto}{\insrsid5512484\charrsid271919 , that is, only to the extent of the prejudice suffered.}{\insrsid271919 }{ \insrsid5512484\charrsid271919 However, where the surety contract is materially altered, the exoneration is complete.}{\insrsid271919 }{\insrsid5512484\charrsid271919 The cases cited above are all distinguishable on that ground alone.}{\insrsid5512484 \par }{\insrsid271919\charrsid271919 \par }{\b\insrsid5512484\charrsid271919 [12]}{\insrsid5512484\charrsid271919 \tab Appellant further argues that this Court should judicially recognize a distinction between compensated and uncompensated sureties and that Standard Plytrade is a compensated surety. Standard Plytrade received an exclusive supply agreement with BBHS as con sideration for issuing the Performance Guaranty for the Castro home improvement project. As a compensated surety, Standard Plytrade would only be permitted exoneration to the extent of the prejudice suffered.}{\insrsid271919 }{ \insrsid5512484\charrsid271919 The public policy reasons for drawing the distinction between a compensated and voluntary surety are based on principles of equity, because }{\insrsid5512484\charrsid271919 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f169\fs24}}}{\insrsid5512484\charrsid271919 to allow compensated surety companies to collect and retain premiums for their services, graded according to the natur e and extent of the risk, and then to repudiate their obligations on slight pretexts which have no relation to the risk, would be most unjust and immoral, and would be a perversion of the wise and just rules designed for the protection of voluntary sureti es.}{\insrsid5512484\charrsid271919 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f169\fs24}}}{\insrsid271919 }{\insrsid5512484\charrsid271919 74 Am.Jur.2d }{\i\insrsid5512484\charrsid271919 Suretyship}{ \insrsid5512484\charrsid271919 , }{\insrsid5512484\charrsid271919 {\field{\*\fldinst SYMBOL 39 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f169\fs24}}}{\insrsid5512484\charrsid271919 259 (1974).}{\insrsid271919 }{\insrsid5512484\charrsid271919 As a compensated surety, Standard Plytrade would need to establish a material alteration of the contract and prejudice from such an alteration.}{\insrsid271919 }{\insrsid5512484\charrsid271919 Furthermore, exoneration would be limited to the extent of the prejudice suffered by the surety.}{\insrsid5512484 \par }{\insrsid271919\charrsid271919 \par }{\b\insrsid5512484\charrsid271919 [13]}{\insrsid5512484\charrsid271919 \tab However, to accept Appellant}{\insrsid5512484\charrsid271919 {\field{\*\fldinst SYMBOL 61 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f169\fs24}}}{ \insrsid5512484\charrsid271919 s contention that Standard Plytrade should be exonerated only to the extent of the prejudice, this Court must first be willing and able to draw a distinction between compensated and gratuitous sureties.}{\insrsid271919 }{ \i\insrsid5512484\charrsid271919 Chapman v. Hoage}{\insrsid5512484\charrsid271919 , 296 U.S. 526, 531 (1936).}{\insrsid271919 }{\insrsid5512484\charrsid271919 In }{\i\insrsid5512484\charrsid271919 Hoage}{\insrsid5512484\charrsid271919 , the United States Supreme Court recognized that a compensated surety is released by a modification of the principal}{\insrsid5512484\charrsid271919 {\field{\*\fldinst SYMBOL 61 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f169\fs24}}}{ \insrsid5512484\charrsid271919 s obligation to the extent that the surety is prejudiced.}{\insrsid271919 }{\i\insrsid5512484\charrsid271919 Id.}{\insrsid5512484\charrsid271919 at 531.}{\insrsid271919 }{\insrsid5512484\charrsid271919 However,}{ \insrsid271919 }{\insrsid5512484\charrsid271919 the Hoage court stated that general principles of suretyship would apply.}{\insrsid271919 }{\i\insrsid5512484\charrsid271919 Id.}{\insrsid5512484\charrsid271919 at 334.}{\insrsid271919 }{ \insrsid5512484\charrsid271919 Hoage did not involve a}{\insrsid271919 }{\insrsid5512484\charrsid271919 statute which provides complete exoneration in certain situations (i.e., the material alteration of the obligation) and }{ \i\insrsid5512484\charrsid271919 pro tanto}{\insrsid5512484\charrsid271919 relief in others (i.e., an act or omission of creditor which prejudices the surety).}{\insrsid271919 }{\i\insrsid5512484\charrsid271919 See}{\insrsid5512484\charrsid271919 , 18 GCA }{\insrsid5512484\charrsid271919 {\field{\*\fldinst SYMBOL 39 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f169\fs24}}{\field{\*\fldinst SYMBOL 39 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f169\fs24}}}{\insrsid5512484\charrsid271919 31601, 32205.}{\insrsid5512484 \par }{\insrsid271919\charrsid271919 \par }{\b\insrsid5512484\charrsid271919 [14]}{\insrsid5512484\charrsid271919 \tab Under relevant case law interpreting statutory provisions similar to ours, a surety is exonerated not only in the absence of prejudice or injury but also when an alteration benefits the surety.}{\insrsid271919 }{\i\insrsid5512484\charrsid271919 See, Boteler v. Conway}{\insrsid5512484\charrsid271919 , 56 P.2d 587, 589 (Cal. Ct. App. 1936); s}{\i\insrsid5512484\charrsid271919 ee also}{\insrsid5512484\charrsid271919 ,}{\insrsid271919 }{\i\insrsid5512484\charrsid271919 Alcatraz}{ \insrsid5512484\charrsid271919 , 85 P. 156, 157 (Cal Ct. App. 1906); }{\i\insrsid5512484\charrsid271919 Lowrey}{\insrsid5512484\charrsid271919 , 165 P. 440, 441; }{\i\insrsid5512484\charrsid271919 Michelin Tire Co. }{\insrsid5512484\charrsid271919 193 P. 770; 773.}{\insrsid271919 }{\insrsid5512484\charrsid271919 And while this Court does not feel bound by such decisions, we also do not feel it necessary to deviate from the clear path that has already been drawn.}{\insrsid271919 }{ \i\insrsid5512484\charrsid271919 People v. Quenga}{\insrsid5512484\charrsid271919 , 1997 Guam 6 }{\insrsid5512484\charrsid271919 {\field{\*\fldinst SYMBOL 38 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f169\fs24}}}{\insrsid5512484\charrsid271919 13, n.4. }{\insrsid5512484 \par }{\insrsid271919\charrsid271919 \par }{\b\insrsid5512484\charrsid271919 [15]}{\insrsid5512484\charrsid271919 \tab The California Supreme Court, in rejecting the idea of judicially modifying Cal. Civil Code }{\insrsid5512484\charrsid271919 {\field{\*\fldinst SYMBOL 39 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f169\fs24}}}{\insrsid5512484\charrsid271919 2840 to treat compensated sureties differently stated: }{\insrsid5512484\charrsid271919 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt \f169\fs24}}}{\insrsid5512484\charrsid271919 [t]o impose such distinctions, while sections 2819 and 2840, Civil Code, read as they now read upon the books, would not be to interpret and to enforce the written law, but to make new law in hostility to it.}{ \insrsid271919 }{\insrsid5512484\charrsid271919 It is for the Legislature, and not for the courts, to modify our statutory}{\insrsid271919 }{\insrsid5512484\charrsid271919 law. . .}{\insrsid5512484\charrsid271919 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f169\fs24}}}{\insrsid271919 }{\i\insrsid5512484\charrsid271919 Lowrey}{\insrsid5512484\charrsid271919 , 165 P. 440 at 441.}{\cs15\super\insrsid5512484\charrsid271919 \chftn {\footnote \pard\plain \qj \fi720\li0\ri0\sa240\nowidctlpar\faauto\rin0\lin0\itap0 \fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\cs15\super\insrsid5512484 \chftn }{\fs20\insrsid5512484 At the same time, the California Court has imputed the requirement that alterations be material before justifying exoneration. }{\i\fs20\insrsid5512484 See}{\fs20\insrsid5512484 , }{\i\fs20\insrsid5512484 Lowrey}{\fs20\insrsid5512484 , 165 P.2d 440, 441.}}}{\insrsid271919 }{ \insrsid5512484\charrsid271919 The California decisions are guided by the plain language of CAL. CIV. CODE }{\insrsid5512484\charrsid271919 {\field{\*\fldinst SYMBOL 39 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f169\fs24}}}{ \insrsid5512484\charrsid271919 2840 (repealed 1939) which provides for complete exoneration when the contract is altered, and }{\i\insrsid5512484\charrsid271919 pro tanto}{\insrsid5512484\charrsid271919 exoneration when the creditor acts or fails to act in a way which prejudices the surety.}{\insrsid271919 }{\insrsid5512484\charrsid271919 The Guam statute is identical to the California provisions in this instan ce and no statutory distinction exists between gratuitous and compensated sureties.}{\insrsid271919 }{\insrsid5512484\charrsid271919 This Court cannot now create one in circumvention of legislative policy.}{\insrsid5512484 \par }{\insrsid271919\charrsid271919 \par }{\b\insrsid5512484\charrsid271919 [16]}{\insrsid5512484\charrsid271919 \tab As the law now stands, neither 18 GCA }{\insrsid5512484\charrsid271919 {\field{\*\fldinst SYMBOL 39 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f169\fs24}}}{ \insrsid5512484\charrsid271919 31601 nor }{\insrsid5512484\charrsid271919 {\field{\*\fldinst SYMBOL 39 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f169\fs24}}}{\insrsid5512484\charrsid271919 32205 requires a showing of prejudice when a contract alteration materially changes the principal}{\insrsid5512484\charrsid271919 {\field{\*\fldinst SYMBOL 61 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f169\fs24}}}{\insrsid5512484\charrsid271919 s obligation.}{\insrsid271919 }{\insrsid5512484\charrsid271919 Nor does the Performance Guaranty itself suggest that }{\i\insrsid5512484\charrsid271919 pro tanto}{\insrsid5512484\charrsid271919 exoneration is an affordable relief.}{\insrsid271919 }{ \insrsid5512484\charrsid271919 18 GCA }{\insrsid5512484\charrsid271919 {\field{\*\fldinst SYMBOL 39 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f169\fs24}}{\field{\*\fldinst SYMBOL 39 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f169\fs24}}}{ \insrsid5512484\charrsid271919 32205(2) and (3) already provide }{\i\insrsid5512484\charrsid271919 pro tanto}{\insrsid5512484\charrsid271919 exoneration where the prejudice suffered by the surety is caused by an act or omission of the creditor.}{ \insrsid271919 }{\insrsid5512484\charrsid271919 If this Court were to impute a }{\i\insrsid5512484\charrsid271919 pro tanto}{\insrsid5512484\charrsid271919 exoneration for material alterations of the contract, it would be reading into the statute a provision which the Legislature could have provided, but did not.}{\insrsid271919 }{\insrsid5512484\charrsid271919 Since the Guam Legislature did not provide for }{\i\insrsid5512484\charrsid271919 pro tanto}{\insrsid5512484\charrsid271919 exoneration when a construction contract is materially altered, this Court cannot impute such relief.}{\insrsid271919 }{ \insrsid5512484\charrsid271919 As a matter of law, a material alteration completely exonerates the surety.}{\insrsid5512484 \par }{\insrsid271919\charrsid271919 \par }{\b\insrsid5512484\charrsid271919 [17]}{\insrsid5512484\charrsid271919 \tab The Construction Contract, Performance Guaranty and Indemnity Agreement also provide remedies where the Construction Contract is altered without the surety}{ \insrsid5512484\charrsid271919 {\field{\*\fldinst SYMBOL 61 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f169\fs24}}}{\insrsid5512484\charrsid271919 s consent.}{\insrsid271919 }{\insrsid5512484\charrsid271919 The Construction Contract, Performance Guara nty and Indemnity Agreement were all executed as part of a single transaction.}{\insrsid271919 }{\insrsid5512484\charrsid271919 Such documents are construed as an entire contract.}{\insrsid271919 }{\i\insrsid5512484\charrsid271919 Conway}{ \insrsid5512484\charrsid271919 , 56 P.2d 587 at 588.}{\insrsid271919 }{\insrsid5512484\charrsid271919 Various provisions within each of the three documents discuss alterations and the effect of su ch alterations on the Construction Contract and Performance Guaranty.}{\insrsid271919 }{\insrsid5512484\charrsid271919 Specifically: (1)}{\insrsid271919 }{\insrsid5512484\charrsid271919 Paragraph 8 of the Construction Contract permits Castro to make changes to the plans without voiding the Construction Contract; (2) however, paragraph 8 of the Perfor mance Guaranty requires that all material changes to the plans and Construction Contract be approved by the surety; and (3) the Indemnity and Supply Agreement places the duty of informing Standard Plytrade of any changes or alterations on the contractor, BBHS.}{\insrsid271919 }{\insrsid5512484\charrsid271919 Paragraph 8 of the Performance Guaranty states specifically: \par }{\insrsid271919 \par }\pard \qj \li720\ri0\nowidctlpar\faauto\rin0\lin720\itap0\pararsid271919 {\insrsid5512484\charrsid271919 this Performance Guaranty guarantees the Contractor}{\insrsid5512484\charrsid271919 {\field{\*\fldinst SYMBOL 61 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f169\fs24}}}{\insrsid5512484\charrsid271919 s performance of the Contract set forth above, }{\b\insrsid5512484\charrsid271919 any modification, alteration or change in tha t Contract, its drawings or specifications must be agreed to in writing by the Guarantor, or this Guaranty is void and the Guarantor}{\b\insrsid5512484\charrsid271919 {\field{\*\fldinst SYMBOL 61 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f169\fs24}}}{ \b\insrsid5512484\charrsid271919 s obligation exonerated.}{\insrsid271919 }{\insrsid5512484\charrsid271919 (}{\i\insrsid5512484\charrsid271919 Emphasis added.)}{\insrsid5512484\charrsid271919 \par }\pard \qj \li0\ri0\nowidctlpar\faauto\rin0\lin0\itap0\pararsid271919 {\insrsid5512484\charrsid271919 \par It states further, }{\insrsid5512484\charrsid271919 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f169\fs24}}}{\insrsid5512484\charrsid271919 [a]ny and all modifications of the Contract are hereby deemed to be materials [sic] and will cause the exoneration of the Guarantor}{\insrsid5512484\charrsid271919 {\field{\*\fldinst SYMBOL 61 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f169\fs24}}}{ \insrsid5512484\charrsid271919 s obligations hereunder if not expressly agreed to in writing by the Guarantor.}{\insrsid5512484\charrsid271919 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f169\fs24}}}{\insrsid271919 }{ \insrsid5512484\charrsid271919 Under the terms of the Construction Contract and Performance Guaranty, the $2,447.20 change order was an unapproved material alteration of the Construction Contract for which the remedy is exoneration.}{\insrsid271919 }{ \insrsid5512484\charrsid271919 18 GCA }{\insrsid5512484\charrsid271919 {\field{\*\fldinst SYMBOL 39 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f169\fs24}}}{\insrsid5512484\charrsid271919 32201 also limits the surety}{\insrsid5512484\charrsid271919 {\field{\*\fldinst SYMBOL 61 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f169\fs24}}}{\insrsid5512484\charrsid271919 s obligation to the express term of the contract.}{\insrsid271919 }{\insrsid5512484\charrsid271919 In case of a breach of the contract, the surety cannot be held to more than the contract prescribes as a penalty. }{\i\insrsid5512484\charrsid271919 Id.}{\insrsid271919 }{\insrsid5512484\charrsid271919 The Construction Contract provided for complete exoneration as the penalty for an unapproved material alteration and the law requires that such penalty be enforced.}{\insrsid5512484 \par }{\insrsid271919\charrsid271919 \par }{\b\insrsid5512484\charrsid271919 [18]}{\insrsid5512484\charrsid271919 \tab It is also clear that such exoneration should be complete, and not }{\i\insrsid5512484\charrsid271919 pro tanto}{\insrsid5512484\charrsid271919 .}{\insrsid271919 }{ \insrsid5512484\charrsid271919 Paragraph 7 of the Performance Guaranty permits }{\i\insrsid5512484\charrsid271919 pro tanto}{\insrsid5512484\charrsid271919 exoneration to the extent that the Owner interferes with the prompt performance of the Contractor, but in no other situations is }{\i\insrsid5512484\charrsid271919 pro tanto}{\insrsid5512484\charrsid271919 exoneration provided for in the Construction Contract or Performance Guaranty.}{ \insrsid271919 }{\insrsid5512484\charrsid271919 Paragraph 8 of the Performance Guaranty does not limit exoneration to the extent of prejudice suffered by the surety.}{\insrsid5512484 \par }{\insrsid271919\charrsid271919 \par }{\b\insrsid5512484\charrsid271919 [19]}{\insrsid5512484\charrsid271919 \tab Both the statutes and the contractual provisions}{\insrsid271919 }{\insrsid5512484\charrsid271919 are clear and unambiguous in requiring that preapproval of a material alteration of the Construction Contract must be obtained from the surety, Standard Plytrade.}{\insrsid5512484 \par }{\insrsid271919\charrsid271919 \par }\pard \qc \li0\ri0\nowidctlpar\tqc\tx4680\faauto\rin0\lin0\itap0\pararsid271919 {\b\caps\insrsid5512484\charrsid271919 Conclusion \par }\pard \qj \li0\ri0\nowidctlpar\tqc\tx4680\faauto\rin0\lin0\itap0\pararsid271919 {\insrsid271919\charrsid271919 \par }\pard \qj \li0\ri0\nowidctlpar\faauto\rin0\lin0\itap0\pararsid271919 {\b\insrsid5512484\charrsid271919 [20]}{\insrsid5512484\charrsid271919 \tab There was a material alteration of the Construction Contract. Both Guam law and the provisions of the Construction Contract and Performance Guaranty operate to exonerate Standard Plytrade from liability due to the material alterat ion. Such exoneration, either under Guam law or the contractual provisions is complete.}{\insrsid271919 }{\insrsid5512484\charrsid271919 The Guam Legislature has not altered the surety statutes to allow for}{\i\insrsid5512484\charrsid271919 }{ \insrsid5512484\charrsid271919 the exoneration of compensated sureties to the extent of prejudice suffered by a material alteration of the contract.}{\insrsid271919 }{\insrsid5512484\charrsid271919 As there is no genuine issue of any mate rial fact, and the trial court correctly applied the relevant law, the summary judgment in favor of Standard Plytrade is AFFIRMED.}{\insrsid271919 \par \par }{\insrsid5512484\charrsid271919 DATED}{\ul\insrsid271919 }{\insrsid5512484\charrsid271919 March 1998}{\ul\insrsid271919 \par \par }\pard \qc \li0\ri0\nowidctlpar\tx-1440\faauto\rin0\lin0\itap0\pararsid271919 {\insrsid5512484\charrsid271919 JOAQUIN C. ARRIOLA, Associate Justice\tab \tab EDUARDO CALVO, Associate Justice}{\insrsid271919 \par }\pard \qj \li0\ri0\nowidctlpar\tqc\tx4680\faauto\rin0\lin0\itap0\pararsid271919 {\insrsid271919 \par }\pard \qc \li0\ri0\nowidctlpar\tqc\tx4680\faauto\rin0\lin0\itap0\pararsid271919 {\insrsid5512484\charrsid271919 JANET HEALY WEEKS, \par }\pard \qc \li0\ri0\nowidctlpar\faauto\rin0\lin0\itap0\pararsid271919 {\insrsid5512484\charrsid271919 Chief Justice, Acting \par }}