Court Upholds $619,419.50 Judgment Against Pham

Texas appeals court affirms a personal guaranty judgment tied to the defaulted Holy Kombucha loan.

Updated on Nov. 7, 2026 in Corporate Finance

Court Upholds $619,419.50 Judgment Against Pham

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The Texas Sixth Court of Appeals upheld a $619,419.50 judgment against Theresa Pham in favor of Montgomery Capital Partners IV, LP. The judgment stems from a personal guaranty Pham signed on a loan to Holy Kombucha, Inc., which defaulted in April 2024.

Why it matters

The ruling confirms that a personal guaranty can be enforced against an individual co-owner after a company defaults on a business loan. It also shows how pre-judgment interest at a contractual rate can substantially increase the amount owed under such obligations.

The judgment reflects $500,000 in guaranteed damages plus $119,419.50 in pre-judgment interest accrued at a 16 percent contractual rate compounded daily, measured against a $2,044,544.92 loan balance at the time of the December 2021 forbearance agreement. The extraction does not indicate whether Pham intends to appeal further.

The players

Montgomery Capital Partners IV, LP

The lender that issued the $2 million loan to Holy Kombucha and won the judgment against Pham.

Theresa Pham

A partial owner of Holy Kombucha, Inc. who signed a personal guaranty on the loan and was ordered to pay the judgment.

Texas Sixth Court of Appeals

The state appellate court that affirmed the trial court's judgment against Pham.

The details

Montgomery Capital Partners loaned $2 million to Holy Kombucha, Inc. in January 2021, and Pham signed a personal guaranty limited to the lesser of $500,000 or total draw-facility advances. After a first default led to a December 2021 forbearance agreement, Pham argued the facility was paid off in April 2022, but the trial court found the guarantied debt never fell below the $2,044,544.92 threshold. The appeals court also rejected Pham's venue objection because she did not timely request a hearing on moving the case to Dallas County, though Justice Jeff Rambin dissented on the admission of the loan balance sheet.

January 2021: Montgomery Capital loaned $2 million to Holy Kombucha, Inc.
December 2021: Holy Kombucha entered a forbearance agreement after its first default.
April 2022: Pham claims the draw facility was paid off, extinguishing her guaranty.
April 2024: Holy Kombucha defaulted again, and Montgomery sued Pham.
October 30, 2026: The Texas Sixth Court of Appeals upheld the $619,419.50 judgment.

Market Dynamics

The case illustrates how personal guaranties from business co-owners remain a key lender protection in Texas commercial lending, with contractual interest terms able to grow the amount owed well beyond the guaranty cap. It reinforces that such obligations can survive a company's default and a claimed payoff dispute.

Co-owners who sign personal guaranties on business loans may be held liable for the full guaranteed amount even after a company defaults. Interest terms in the loan agreement can substantially increase the total owed before judgment.

The takeaway

Anyone signing a personal guaranty should understand both the cap on their liability and how contractual interest will accrue if the loan defaults. Reviewing those terms before signing can prevent a far larger balance than the original guaranty amount.