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No Guarantee NY's Guaranty Law Survives Constitutional Scrutiny

After nearly four years of litigation, the Second Circuit held recently that a small commercial landlord lacked standing to seek declaratory relief against the City of New York challenging the Guaranty Law under the Contracts Clause of the U.S. Constitution.

5 minute readDecember 01, 2024 at 01:11 AM
By
Claude G. Szyfer
& Daria D. Anichkova
No Guarantee NY's Guaranty Law Survives Constitutional Scrutiny

By Claude G. Szyfer and Daria D. Anichkova

As part of the suite of laws seeking to provide protections to commercial tenants during the pandemic, the City Council passed N.Y.C. Admin. Code §§22-902(a)(14) and 22-1005, which prohibited enforcement of personal guaranties for tenant defaults occurring between March 7, 2020 and June 30, 2021 (the “Guaranty Law”).

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