NYC law changes for commercial lease personal guarantors. Kiritsis Law 212 922 0005
Besides looking at merely the plain reading of the recent statutory law language, we may need to be mindful of their ambiguous nature in terms of court enforcement.
Common Legal TopicsIt is important to note that generally speaking (as with virtually everything in law, every 'rule' has an 'exception' -- i.e. when dealing with legal entities as opposed to individuals, in this type of cases), one does NOT necessarily need legal counsel to assert his/her legal rights. A way to both nullify and bolster the enforcement mechanisms of personal guarantor clauses in commercial lease agreements, may lay on the Corporation/LLC kit documents of the underlying commercial tenant.
Cause for increase in litigation?Although, the law seems to have changed drastically against NYC commercial landlords in this regard, many of our landlord clients seem to have their legal rights abilities remain largely intact, due in large part to well drafted and properly executed commercial lease agreements. The recent changes in the law with regards to commercial tenant personal guarantors, seem to be largely due to a bill that was enacted by Mayor Bill De Blasio on or about May 26th, 2020.