Guarantor, Not Tenant, on Hook for Lease Obligations

April 25, 2014
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Facts: A guarantor promised to fulfill the lease obligations of a restaurant tenant if the tenant breached the lease. It signed a “good guy” unconditional guaranty. The tenant stopped paying rent because it claimed its sales had declined because scaffolding built in front of its space by the owner interfered with its entrance. After a series of legal proceedings with the tenant, the owner sued the guarantor for the unpaid rent. A trial court ruled in favor of the owner. The guarantor appealed.

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