Mayor Bill de Blasio just signed a  bill  that is aimed at protecting lease guarantors from personal liability after their businesses were shut down because of the standing governmental orders.  With eviction proceeding shut down until well into the summer, the legislation’s goal is to make sure a landlord, since it can’t bring an eviction proceeding right now, doesn’t decide to sue an individual under the guaranty.

One attorney has identified a problem with the measure however: Namely that the bill references a “provision in a commercial lease or other rental agreement.” The hitch is this, attorney Maxwell Breed, a real estate and litigation partner at New York law firm Warshaw Burstein, tells guaranties generally are separate instruments and not “provisions” of leases, or other agreements.

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Erika Morphy

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