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404 Park Partners v. Lerner

Appellate Division of the Supreme Court of New York, First Department
Jul 27, 2010
75 A.D.3d 481 (N.Y. App. Div. 2010)

Opinion

No. 2988.

July 27, 2010.

Order, Supreme Court, New York County (Richard F. Braun, J.), entered February 17, 2010, which, to the extent appealed from, granted plaintiff summary judgment against defendant Grossberg, unanimously reversed, on the law, without costs, and plaintiffs motion denied with respect to that defendant.

Auciello Law Group, P.C., Brooklyn (Anthony J. Auciello of counsel), for appellant.

Ephron-Mandel Albin Howard, L.L.P., New York (Melissa Ephron-Mandel of counsel), for respondent.

Before: Concur — Gonzalez, P.J., Sweeny, Richter, Abdus-Salaam and Roman, JJ.


Defendants were guarantors of the tenant's obligations to landlord plaintiff. Defendants Miller and Grossberg signed a guaranty in connection with the lease extension in 2003. In 2005, when the lease was again extended under terms that significantly escalated the rent, the guaranty was then signed by defendants Miller and Lerner.

A guaranty of a tenant's obligations under a lease must be strictly interpreted in order to assure its consistency with the lease terms to which the guarantor actually consented. Since Grossberg did not sign the 2005 guaranty, and the increase in rent and additional financial terms changed the risk assumed in her 2003 guaranty, the IAS court erred in concluding, as a matter of law, that her obligation under the 2003 guaranty continued through the term of the 2005 lease ( Lo-Ho LLC v Batista, 62 AD3d 558). Whether that obligation survives the most recent lease extension, under the terms of Grossberg's original guaranty, remains an issue of fact for trial ( cf. White Rose Food v Saleh, 99 NY2d 589).


Summaries of

404 Park Partners v. Lerner

Appellate Division of the Supreme Court of New York, First Department
Jul 27, 2010
75 A.D.3d 481 (N.Y. App. Div. 2010)
Case details for

404 Park Partners v. Lerner

Case Details

Full title:404 PARK PARTNERS, L.P., Respondent, v. JACK LERNER et al., Defendants…

Court:Appellate Division of the Supreme Court of New York, First Department

Date published: Jul 27, 2010

Citations

75 A.D.3d 481 (N.Y. App. Div. 2010)
2010 N.Y. Slip Op. 6216
906 N.Y.S.2d 36

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