Court Questions Whether Guaranty in Initial Lease Extended Upon Lease Renewal

Landlord sued to evict tenant in housing court for nonpayment of rent. In that prior proceeding, landlord obtained a judgment for rent owed in the amount of $45,100, and tenant moved out of the unit. Landlord then sued tenant and her lease guarantor in State Supreme Court, and sought enforcement of the money judgment against the guarantor. While acknowledging that a guaranty lasts the full term of a lease, the court pointed out that the issue here was whether the guaranty survived lease amendments, extensions, renewals, or subsequent leases. Tenant claimed that the later leases had no signed guaranty provision. Landlord argued that the guaranty in the initial lease stated that it "will not be affected by any change in the Lease, whatsoever. This includes, but is not limited to, any extension of time or renewals. The Guaranty will bind [the defendant] even if [defendant] is not a party to these changes." Landlord asked the court to rule in its favor without a trial.

The court ruled against landlord, finding that a trial was required to determine whether the subsequent leases constituted renewals or extensions of the original lease for which the guarantor had signed the guaranty.  When tenant's initial lease term expired, the tenant failed to vacate. Nine months later, landlord and tenant entered into an additional lease for the apartment, which was later renewed by another lease agreement. Neither of the two additional leases referred to the initial lease and neither of them were signed by the tenant's guarantor. 

511 E. 80th St. LLC v. Margalit: Index No. 150100/2023 (Sup. Ct. NY; 11/2/22; Nock, J)