Scott Mollen Scope of Guarantor Protections; Lack of Standing To Foreclose: This Week in Scott Mollen's Realty Law Digest
Scott Mollen discusses "Mansion Realty LLC v. 656 7th Ave. Gym LLC," and "Bank of NY Mellon Trust Co. NA v. Hendrickson."
July 18, 2023 at 02:08 PM
17 minute read
Commercial Landlord -Tenant—Landlord Can Collect Against Guarantor Notwithstanding New York City Administrative Code §22-1005—Lack of Appellate Authority and Conflicting Trial Court Decisions—Commercial Tenants Are Not Required To Mitigate Damages
This decision involved an action by a landlord to collect moneys allegedly owed pursuant to a commercial lease. The tenant operated a gym facility. The decision addressed "significant questions about the scope of the protections of conferred on personal guarantors by New York City Administrative Code §22-1005 (§22-1005)."
The landlord had commenced an action against the tenant, seeking unpaid rent that accrued through Oct. 31, 2020. The landlord thereafter moved "to seek post-commencement unpaid rent against tenant." The landlord also sought leave to add an individual guarantor of the lease as a defendant, and to seek "unpaid rent from the guarantor for, at a minimum, the period running from July 1, 2021, through the filing of this motion."
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