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In the real estate business, as in many others, the question of just who is contractually responsible when things go wrong is a recurring one, particularly when a closely-held corporation or other business entity is involved. If rent goes unpaid, is the business’ proprietor on the hook, or the corporation of which he is the sole owner? Or when a guarantor fails to come through after a lessee defaults, can he and his business entities be treated as one in the same, so that satisfaction can be had through attachment of the company’s assets? A scenario similar to these played out in case recently decided by the Appellate Court of Illinois, First District, Second Division: Golfwood Square LLC v. O’Malley, 2018 IL App (1st) 172220-U (8/11/2018). In Golfwood, the court had to decide just how much responsibility a business entity could be made to shoulder that was not directly involved in a dispute between a commercial lessor and the guarantor of its lessee’s contractual responsibilities.
By Alan Nochumson
Part One of a Two-Part Article
When entering into a lease for commercial space, there are some items that should not be overlooked. Landlords and tenants alike should make sure that the following things are addressed in the lease, one way or another.
By Ira Fierstein and Michelle Palka
An Illinois Appellate Court recently ruled in favor of a commercial tenant after a new owner acquired a commercial building and attempted to collect accrued unpaid rent owed to the previous landlord.
By Albena Petrakov
With the recent carnage in the retail industry, including Sears and many other retailers of all shapes and sizes, a lot of attention goes to the fate of landlords when their tenants seek bankruptcy protection.
First Court’s Lack of Jurisdiction over Cause of Action Means Second Action Is Not Barred