Gordon Rees Scully Mansukhani partner Daniel J. DiMuro and senior counsel, Maxine J. Nicholas, prevailed on a summary judgment motion on behalf of a commercial landlord client in a breach of lease dispute.
The lease at issue involved a commercial property in New York City, which included a personal guaranty. After the tenant defaulted under the lease, Gordon & Rees filed suit on behalf of the landlord against the personal guarantor to recover the monies due and owing under the lease. In filing the motion for summary judgment, the firm's team argued that there was no genuine dispute that the tenant breached the lease or that the defendant was liable to the landlord under the personal guaranty. Conversely, the defendant argued that he was exempt from his obligations under the personal guaranty under N.Y.C. Admin. Code, § 22-1005. This section of the Administrative Code was recently enacted and prohibits the enforcement of personal guaranties for New York City commercial leases involving COVID-19 impacted tenants when certain conditions are met.
The Gordon & Rees team argued that the defendant and his business were not subject to the protections afforded by the Administrative Code. After oral argument, the Court agreed and granted Gordon & Rees’ motion for summary judgment, ordering that the defendant pay all monies due and owing under the lease and Gordon & Rees’ entire application for attorneys’ fees incurred in connection with the prosecution of this matter.