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ORIX CREDIT ALLIANCE, INC. v. N.Y. BELL BAGEL

Appellate Division of the Supreme Court of New York, Second Department
Dec 18, 1995
222 A.D.2d 566 (N.Y. App. Div. 1995)

Opinion

December 18, 1995

Appeal from the Supreme Court, Kings County (Held, J.).


Ordered that the order is reversed insofar as appealed from, on the law, with costs, summary judgment is awarded to the plaintiff against the defendant Martin Bell, and the matter is remitted to the Supreme Court, Kings County, for the entry of a judgment in the amount of $153,328.21, together with interest from January 1, 1994, pursuant to the parties' agreement; and it is further,

Ordered that the remainder of the plaintiff's claim, regarding "late charges" and reasonable attorneys' fees under the parties' agreement, is severed and remitted to the Supreme Court, Kings County, for determination.

In 1986, individual defendant Martin Bell executed a written guarantee on behalf of the corporate obligor, N.Y. Bell Bagel, Inc. (hereinafter NYBBI), in which he expressly promised the plaintiff's assignor that he would guarantee payment of "any and all schedules or leases now or hereafter entered into" between the lessor and the lessee, as well as "all the obligations and liabilities due and to become due to the lessor from the lessee, under any lease, note or other obligation of the lessee to the lessor". The guarantee was, by its terms, "an open and continuing" guarantee. Martin Bell is therefore responsible as a matter of law for the debt of NYBBI under two subsequent leases that NYBBI entered into with the plaintiff's assignor ( see, e.g., First Interstate Credit Alliance v Sokol, 179 A.D.2d 583; Israel Discount Bank v 500 Fifth Ave. Assocs., 167 A.D.2d 203; Key Bank v Munkenbeck, 162 A.D.2d 503; Rhodia, Inc. v Steel, 32 A.D.2d 753; Seaman-Andwall Corp. v Wright Mach. Corp., 31 A.D.2d 136, affd 29 N.Y.2d 617).

Bell may not subvert the guarantee's clear and unequivocal language of commitment by offering extrinsic or parol evidence of some contrary "intent" ( see, e.g., Norstar Bank v Prompt Process Serv., 117 A.D.2d 589, 590; Nanuet Natl. Bank v Rom, 96 A.D.2d 898; National Bank of Westchester v Dogwood Constr. Corp., 47 A.D.2d 848).

We therefore remit the instant matter for entry of a judgment in the amount of $153,328.21 against Bell, which represents the principal remaining on certain lease extensions, with interest from January 1, 1994. However, a hearing should be held to ascertain whether the "late costs" and attorneys' fees claimed by the plaintiff are reasonable under the circumstances. Santucci, J.P., Altman, Friedmann and Goldstein, JJ., concur.


Summaries of

ORIX CREDIT ALLIANCE, INC. v. N.Y. BELL BAGEL

Appellate Division of the Supreme Court of New York, Second Department
Dec 18, 1995
222 A.D.2d 566 (N.Y. App. Div. 1995)
Case details for

ORIX CREDIT ALLIANCE, INC. v. N.Y. BELL BAGEL

Case Details

Full title:ORIX CREDIT ALLIANCE, INC., Appellant, v. N.Y. BELL BAGEL, INC., et al.…

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

Date published: Dec 18, 1995

Citations

222 A.D.2d 566 (N.Y. App. Div. 1995)
635 N.Y.S.2d 303

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