News & Analysis as of

Guaranty Claims

Cadwalader, Wickersham & Taft LLP

I Would Prefer Not to – a Scriveners Tale – Not Bartleby

On March 5, 2024, the Supreme Court of the State of New York, ruled that an obvious scriveners error in a guaranty, exempting a guarantor from full recourse liability for the loan’s debt, could be corrected to impose personal...more

Freiberger Haber LLP

Settlement Agreement Found To Be an Instrument for The Payment of Money Only Sufficient to Grant Summary Judgment In Lieu of...

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In past articles, we have examined a motion under CPLR § 3213... CPLR § 3213 is a procedural mechanism that allows a party to make a motion for summary judgment before filing a complaint in actions based upon “an instrument...more

Patton Sullivan Brodehl LLP

Guarantor Liability: Assignment of Note Doesn’t Automatically Assign Guaranty Too

Obligations reduced to a promissory note are often accompanied by a written guaranty. The law treats the guaranty as an independent obligation. A case recently decided by California’s First District Court of Appeal —...more

McGlinchey Stafford

Can My Agent Bind Me to an Arbitration Agreement with a Third Party? - McGlinchey Commercial Law Bulletin - August 18, 2023

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Cincinnati v. PE Alms Hill Realty, LLC, 1st Dist. Hamilton, 2023-Ohio-2784. In this appeal, the First Appellate District affirmed the trial court’s decision to grant commercial lenders summary judgment on their breach of...more

Rivkin Radler LLP

Courts Leave Landlords in the Lurch on Guaranty Law

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Recently, two important court decisions ruled that a New York City local law known as the Guaranty Law, which rendered unenforceable certain guaranties of commercial lease obligations, was unconstitutional. One month later,...more

Freiberger Haber LLP

Guaranty Provision Requiring Some Additional Performance Obligations Held Insufficient to Defeat Motion for Summary Judgment In...

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In past articles, we have examined a motion for summary judgment in lieu of a complaint under CPLR § 3213. Today, we take another look at this statute by examining BBM3, LLC v. Vosotas, 2023 N.Y. Slip Op. 02279 (1st Dept. ...more

Seyfarth Shaw LLP

Federal Court: New York City COVID-19 Guaranty Law Unconstitutional

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On March 31, 2023, U.S. District Judge Ronnie Abrams of the Southern District of New York issued her highly anticipated ruling in the latest iteration of Melendez et al v. The City of New York, et al. Judge Abrams granted...more

McGlinchey Stafford

Is My FDCPA Claim Timely? - McGlinchey Commercial Law Bulletin - March 14, 2023

McGlinchey Stafford on

Ohio- Statute of Limitations Under FDCPA- Bouye v. Bruce, 6th Cir. Nos. 21-6195/22-5016 (Mar. 1, 2023). In this appeal, the Sixth Circuit reversed in part the district court’s decision, finding that a claim brought...more

Eversheds Sutherland (US) LLP

NY Governor’s budget includes proposal to expand Life Insurance Company Guaranty Corporation to health insurance

New York Senate Bill 4007 and Assembly Bill 3007, which represent Governor Kathy Hochul’s state budget proposal, include provisions to amend Article 77 of the New York Insurance Law, the Life Insurance Company Guaranty...more

Farrell Fritz, P.C.

Narrow Escape of Expedited Judgment Under CPLR 3213 Due to Ambiguous Guaranty

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As readers of this blog are aware the CPLR 3213 motion for summary judgment in lieu of complaint can be a powerful tool to secure an expedited judgment, “meld[ing] pleading and motion practice into one step, allowing a...more

Morgan Lewis

When Is a Guaranty Claim Reduced by Recovery in a Debtor’s Bankruptcy Case?

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Consider a lender that extends a term loan in the amount of $1 million to an entity debtor. The loan is guaranteed by the debtor’s owner. If both the debtor and the guarantor become subject to bankruptcy cases, it is settled...more

Jenner & Block

Second Circuit Decision Revives Landlord’s Fight for Rights amid Pandemic Ordinances

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The Second Circuit Court of Appeals issued a potentially far-reaching decision reviving New York City’s commercial landlords’ fight against a sweeping ordinance enacted to combat the COVID-19 pandemic’s economic effects,...more

Tarter Krinsky & Drogin LLP

The Constitutionality of New York City’s “Guaranty Law” Remains in Question After Decision by the Second Circuit

For those interested in knowing whether the New York City “Guaranty Law,” which was enacted by the City Council in May 2020 in the wake of the COVID-19 pandemic, will survive a challenge to its constitutionality, the wait...more

Dechert LLP

The 365(h) Effect: Guaranty Survives Rejection of Underlying Agreement

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In a recent decision, the Court of Appeals for the Sixth Circuit held that the election of a tenant, under Section 365(h) of the Bankruptcy Code, to remain in possession of real property governed by a rejected lease causes a...more

ArentFox Schiff

Landlords Lose: New York Federal Court Upholds Landlord/Tenant Laws Due to COVID-19

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On November 25, 2020, a New York federal court ruled in Melendez v. The City of New York, No. 20-CV-5301 (S.D.N.Y.) denying an injunction and declaring constitutional NYC Council’s newly enacted anti-harassment and guaranty...more

Tarter Krinsky & Drogin LLP

Federal Court Upholds New York City’s Recently Enacted “Guaranty Law” And Related Legislation Concerning Non-Payment Of Rent...

In a highly anticipated decision, Judge Ronnie Abrams of the United States District Court for the Southern District of New York, in Melendez v. City of New York, dismissed a challenge to the “Guaranty Law” and related...more

Kramer Levin Naftalis & Frankel LLP

We Can Work It Out: Overcoming Obstacles to Real Estate Workouts

Real estate lenders and borrowers everywhere are trying to figure out what to do with properties that are either sitting vacant or underperforming pre-pandemic expectations. In New York, a number of mezzanine foreclosures...more

Morgan Lewis - Tech & Sourcing

Contract Corner: The Purview Doctrine – Does a Guaranty Need to Be Reaffirmed When Amending a Guaranteed Contract?

You signed a deal with the US subsidiary of an India-based service provider, and the Indian parent issued a guaranty. Several years later, you are now amending the original master services agreement (MSA) to add to the scope...more

White & Case LLP

On-demand guarantee for work on an FSO: a parent's nightmare?

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Security in the form of bonds and/or guarantees is commonly given in contracts for the building or conversion of vessels to floating production storage and offloading ("FPSO") or floating storage and offloading ("FSO")...more

Barnea Jaffa Lande & Co.

Guidelines for Standardization of Contracts and Tenders of Infrastructure Companies in the Area of Transportation

In light of the rise of investments in transportation projects, the Accountant General of the Ministry of Finance, the Director General of the Ministry of Transport, and the Manager of the Government Companies Authority...more

Carlton Fields

Real Property & Title Insurance Update: Week Ending May 3, 2019

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Real Property Update - Restrictive Covenants: trial court erred by failing to provide injunctive relief in favor of homeowner as it related to trees planted in common area in violation of restrictive covenants - McIntosh...more

White & Case LLP

Mexican House of Representatives Approves Reforms to the Retirement Savings Systems Law

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As previously informed in our Client Alert from January 25, the Mexican Federal Executive branch submitted a bill that was published in the House of Representatives Parliamentary Gazette on January 23, 2019, with the purpose...more

Shutts & Bowen LLP

The continuing lease guaranty that didn’t continue after all

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A common theme of the cases and issues discussed in this blog is that document drafting is at the root of many commercial real estate disputes....more

Carlton Fields

Tenth Circuit Confirms Arbitration Award Against Non-Party Surety

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Sujit Ghosh, President of Open Orbit Corporation, entered into a Personal Guaranty for the “full and timely performance of and by” Open Orbit under a Retailer Agreement with DISH Network, LLC. ...more

Patton Sullivan Brodehl LLP

Seven Critical Mistakes LLCs Make, and LLC Manager Power Issues

The “Seven Critical Mistakes LLCs Make” Series - This series of posts covers some of the most serious mistakes that LLCs regularly make. Here are...short summaries of each: Choosing the Wrong Business Partners —...more

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