The trial court concluded that the tenant had terminated the lease without the Plaintiff Lender's consent and that the Guarantor was thus liable on the guaranty, pursuant to the recourse provision in the loan agreement. The court awarded the Lender over $42 million in damages plus attorney fees and costs. The Guarantor appealed the judgment and award of attorney fees.
The loan guaranty agreement here provided that the guaranty would kick in upon the occurrence of certain events, including the termination or cancellation of the lease without the prior written consent of the Plaintiff Lender. Further, the lease provided that "[n]o act by Lessor [the borrower] other than giving notice of termination to Lessee shall terminate Lessee's right to possession."
Ralph T. Wutscher
McGinnis Tessitore Wutscher LLP
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