New York guide for legal actions against commercial tenants and personal guarantors. 212 922 0005
The legal hurdles needed to overcome with legally taking money judgement actions against commercial landlords and personal guarantors can seem daunting at first. Hopefully, this guide (hopefully) provides an overview of the legal landscape in this area.
Overview.It should be noted that New York law, even if entirely generated at the State center-type government level (i.e. out of Albany -- which is by the way very rarely the case,) a considerable factor in its interpretation and enforcement would be the specific local regulations and legal customs that would happen to be at play on a given case. Commercial landlords and tenants alike, may be well served to have another round of thorough review of their underlying commercial lease documents in effect (if any).
Fact sensitive application of the law is necessary.The changing legal landscape of New York City's real estate industry, that has been brought by Covid 19, have underscored the need of landlord's abilities to consider money judgement type of actions, against both commercial tenants and personal guarantors, respectively. A well drafted and properly planned out commercial lease agreement, can shield landlords (and tenants in some respects) from a lot of unwanted legal aches in the long run. A good idea with regards to personal guarantee style clauses/provisions in commercial lease agreements, is to try and insert many safety valve (fail safe kind) of mechanisms, if protecting the landlord's legal rights is the principle legal objective.