Landlord Can Seek from Guarantor Rent Arrears Falling Outside Pandemic Protection Period

LVT Number: #32043

Landlord sued lease guarantor for a commercial tenant's rent arrears. The court ruled against landlord and dismissed the case. Landlord appealed, and the case was reopened. The unpaid rent sought by landlord accrued both before and during the statutory period set forth in Admin.

Landlord sued lease guarantor for a commercial tenant's rent arrears. The court ruled against landlord and dismissed the case. Landlord appealed, and the case was reopened. The unpaid rent sought by landlord accrued both before and during the statutory period set forth in Admin. Code Section 22-1005, which "provides immunity from the enforcement of certain commercial lease guaranties where personal liability arose (1) as a result of the pandemic-related executive orders affecting the tenant's business and (2) fell within the statutory period of March 7, 2020 to June 30, 2021." Landlord's rent arrears claims totalling $304,000 arose from tenant's lease obligations between May 2018 and February 2020. So, these fell outside the statutory period and the guarantor may be responsible. 

721 Borrower LLC v. Moha: Index No. 650943/21, App. No. 15738-15738A, Case No. 2021-04046, 2021-04105, 2022 NY Slip Op 02504 (App. Div. 1 Dept.; 4/19/22; Gische, JP, Webber, Scarpulla, Rodriguez, Higgitt, JJ)