Construing a guaranty.

Practice point: Although the guaranty was only for the first two years of the lease, the court awarded the landlord the entire accelerated rent amount through the end of the six year lease term. This did not subject the individual guarantor to a greater obligation than he intended or offend the rule of strict construction of guaranties.

Student note:The possibility of acceleration was in the lease that the guarantor signed, and tenant's default in rent and the acceleration took place within the period of the guaranty.

Case: Hawthorne Gardens, LLC v. Salman Home, Inc., NY Slip Op 02436 (1st Dept. 2012).

Here is the decision.

Monday’s issue: Laches.