ST1 REALTY LLC v. CARROLL (2025)

Order, Supreme Court, Bronx County (Leticia M. Ramirez, J.), entered on or about November 7, 2023, which denied plaintiff landlord's motion for summary judgment in lieu of complaint, unanimously reversed, on the law, the motion granted, and the matter remanded for a determination of damages.

In this action against a guarantor of two commercial leases, the landlord seeks to recover on guaranties associated with the leases after obtaining money judgments against the tenant in Civil Court proceedings.  Initially, Supreme Court was a proper forum for this action, as guaranties may be enforced in Supreme Court by way of a CPLR 3213 motion for summary judgment in lieu of complaint (see DB 232 Seigel Mezz LLC v. Moskovits, 223 A.D.3d 610, 611, 204 N.Y.S.3d 469 [1st Dept. 2024]).  Although the landlord obtained Civil Court money judgments against the tenant in connection with the same properties, a landlord's action against a guarantor is not merged into a judgment in a summary holdover proceeding commenced under the lease of an underlying tenant (see APF 286 Mad LLC v. Chittur & Assoc. P.C., 132 A.D.3d 610, 610, 20 N.Y.S.3d 4 [1st Dept. 2015]).

Additionally, he amounts of the claims exceed the general jurisdictional limits for Civil Court actions (New York City Civil Court Act § 202).

On the merits, the landlord established entitlement to summary judgment in connection with the guaranty by submitting proof of the existence of a guaranty or guaranties, the underlying debt, and the guarantor's failure to perform under the guaranties (see 27 W. 72nd St. Note Buyer LLC v. Terzi, 194 A.D.3d 630, 630–631, 150 N.Y.S.3d 34 [1st Dept. 2021], lv. denied 37 N.Y.3d 913, 2021 WL 4782862 [2021]).  Plaintiff's managing agent averred that the tenant failed to pay the judgments or postjudgment use and occupancy required by the leases, and plaintiff thus established that defendant is liable for these amounts.

As to the underlying debt, the landlord submitted the Civil Court money judgments and orders against the tenant in connection with each property, representing all monies owed through March 1, 2023, thus establishing the guarantor's liability for the amounts of the money judgments (see Deco Towers Assoc., LLC v. Fisch, 219 A.D.3d 1245, 1246, 197 N.Y.S.3d 129 [1st Dept. 2023]).  Additionally, in his affidavit, the landlord's managing agent set forth the tenant's obligations for use and occupancy following entry of the money judgments through July 2023, which was exactly as alleged in the notice of motion (see Thirty–Third Equities Co. v. Americo Group, Inc., 294 A.D.2d 222, 222, 743 N.Y.S.2d 10 [1st Dept. 2002]).

Because the landlord established prima facie entitlement to judgment and the guarantor did not oppose the motion or otherwise appear, the landlord is entitled to summary judgment in its favor (see Jacobsen v. New York City Health and Hosps. Corp., 22 N.Y.3d 824, 833, 988 N.Y.S.2d 86, 11 N.E.3d 159 [2014]).