SIGNED LEASED EXTENSION AGREEMENTS AND ACCOMPANYING GUARANTEES
After $7 & Up Clothing Store failed to pay its rent for the period January 2020 and October 2021, its landlord 35th Street Associates filed suit in the New York County Supreme Court as against that tenant, and I.E.S, the lease’s guarantor. Because that court entered judgment as against I.E.S. (the guarantor) for contract breach, an appeal ensued.
Apparently, I.E.S., who was an officer of the company, signed an “absolute and unconditional guaranty” of the lease. Since the owner submitted evidence that all lease payments weren’t made, and that I.E.S. had signed two lease extension agreements (and accompanying guarantees), the Appellate Division, First Department, could discern no error. (It even thought the award of the owner’s legal fees was appropriately supported by billing records.)
We can guarantee, I.E.S wasn’t happy ….
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DECISION