Guarantor Responsible for Tenant's Rent

February 26, 2009

Facts: A guarantor personally guaranteed the obligations of a tenant under its lease for 18 months. The obligation included rent, taxes, and insurance. When the tenant vacated the premises without notice, the owner tried to enforce the guaranty. The guarantor admitted signing the guaranty, but denied that it owed money to the owner. It claimed that the lease was induced by fraud and misrepresentation, because prior to signing the lease, the owner allegedly had promised to provide the tenant and guarantor with a list of business referrals, but never did.

Facts: A guarantor personally guaranteed the obligations of a tenant under its lease for 18 months. The obligation included rent, taxes, and insurance. When the tenant vacated the premises without notice, the owner tried to enforce the guaranty. The guarantor admitted signing the guaranty, but denied that it owed money to the owner. It claimed that the lease was induced by fraud and misrepresentation, because prior to signing the lease, the owner allegedly had promised to provide the tenant and guarantor with a list of business referrals, but never did. The owner sued the guarantor.

Decision: The trial court ruled in favor of the owner.

Reasoning: After reviewing the lease and written guaranty, the court determined that nothing was included in either document that referred to the alleged agreement between the guarantor and the owner. Therefore, there was no misrepresentation or fraud, and the guarantor was responsible for the tenant's unpaid obligations.

  • 1551 Boston Post Road Associates, LLC v. Colin Cantalupo, December 2008

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