Guarantor Not Responsible for Tenant Obligations Under New Lease

Landlord sued a lease guarantor to enforce the guaranties covered by tenant's 2018 lease. Landlord argued that the guaranties applied to any change, extension of time, or renewal of that lease. The court ruled against landlord and dismissed the case, finding that the lease guaranty didn't apply to tenant's subsequent lease.

Landlord appealed and lost. The 2018 lease guaranty didn't apply to new lease agreements. In this case, there was no express extension or renewal of the original lease that ever took place. There was no option to renew or extend included in the 2018 lease, which effectively expired on Aug. 31, 2019. Two subsequent new leases gave no indication that they were "renewal" leases, and the 2020 lease added a new provision relating to early termination. The lease signed in 2020 wasn't an extension of the 2018 lease that would permit landlord to recover from the 2018 lease guarantor.

Paganini v. 40 West 127th Street, LLC: Index No. 651548/21, App. No. 15692, Case No. 2021-04074, 2022 NY Slip Op 02366, NYLJ 4/14/22, p. 19, col. 4 (App. Div. 1 Dept.; 4/12/22; Renwick, JP, Friedman, Moulton, Mendez, Pitt, JJ)