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New York's Seldom Used Expedited Money Judgment Mechanism: CPLR 3213

By Massimo F. D'Angelo and Gregory Wong
April 01, 2024

In the typical commercial lease transaction, a guarantor promises to pay rent and fulfill other contractual obligations on behalf of the tenant (particularly when the tenant is a foreign actor or single-purpose entity with limited assets). If the tenant does not pay rent, the landlord's chief concern is to quickly regain possession of the space and relet it while simultaneously seeking to recover the unpaid rent directly from the (hopefully credit-worthy) guarantor.

In New York state and local court cases, there is a seldom-used procedural mechanism for obtaining an expedited money judgment against a guarantor. Specifically, a landlord may move for summary judgment in lieu of complaint under CPLR 3213 against the guarantor. If successful, and assuming that the tenant does not move the action to federal court based upon diversity jurisdiction or a federal question, the landlord will be able to bypass formal pleadings, discovery, and other motion practice (which require substantial time and expense) to obtain an accelerated money judgment.

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