Landlord & Tenant Law

In landlord's action on a personal guaranty of a commercial lease, landlord appealed from Supreme Court's grant of summary judgment to the guarantor. The Appellate Division affirmed, holding that the guaranty did not extend beyond tenant's lease term.

When landlord negotiated a lease extension with tenant in 2004, guarantor executed a guaranty which, by its terms, made guarantor liable "until the date that there shall have been delivered to Owner a vacate instrument confirming the Premises are vacant, broom clean, free of occupants, and free of Tenant." When the lease extension expired, tenant did not vacate. Landlord brought an action against tenant for breach, which was settled by a stipulation under the terms of which tenant agreed to entry of judgment for $413,800.87 with the understanding that landlord would not execute the judgment if tenant complied with the terms of the new, seven year, lease executed in 2016. Tenant vacated the premises in June 2018 and stopped paying rent. Landlord brought an action against tenant and guarantor to recover rent arrears and to enforce the guaranty. Supreme Court concluded that there were issues of fact about whether guarantor was liable for amounts owed under the 2004 lease extension, but granted guarantor summary judgment dismissing so much of the claim as sought to recover damages for breach of the 2016 lease. Landlord appealed.