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NY Court of Appeals Clarifies Mechanics of ‘Good Guy’ Guaranties and Commercial Leasing

By giving preference to the guaranty’s release conditions and interpreting “surrender” in the guaranty to mean tenant-side relinquishment of possession and control, the court confirms that guaranty discharge can be self-executing, without the need for any landlord acknowledgment which was required under the prior prevailing authority on the subject.

13 minute read December 01, 2025 at 12:07 AM
By
Massimo D'Angelo and William M. Pekarsky
NY Court of Appeals Clarifies Mechanics of ‘Good Guy’ Guaranties and Commercial Leasing

The recent decision by the New York Court of Appeals in 1995 CAM LLC v. West Side Advisors, LLC, 2025 N.Y. Slip Op. 05782 (2025), clarifies the mechanics of how “good guy” guaranties interact with commercial leases in New York.

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