BBG obtained summary judgment on behalf of its landlord client against three guarantors of a commercial lease, securing an award of approximately $265,000 in unpaid rent and additional rent.
The guarantors argued that the lease and guarantees were fraudulently induced based on alleged non-disclosure of prior violations at the premises. The same allegations are the subject of a separate action filed by the tenant. The court rejected that position and adopted BBG’s arguments, holding that the asserted fraud did not relieve the guarantors of their payment obligations.
In doing so, the court cited First Department authority confirming that a commercial tenant’s obligation to pay rent is an independent covenant, and is not excused by alleged breaches absent an express lease provision to the contrary.
The court reserved decision on attorneys’ fees pending resolution of the remaining claims in the action relating to property damage.
The client was represented by Mark Antar.