Legal Question in Business Law in New Jersey

my wife signed personal guarantee on her friend's dry cleaner commercial lease

now her friend and her got lawsuit from landlord about contamination of soil and under water

is she liable all the way even she was just co signer not daily worker or owner of business


Asked on 4/28/11, 5:26 pm

5 Answers from Attorneys

John Corbett Corbett Law Firm LLC

Your wife really needs to have a lawyer review the suit, the lease, and the circumstances that led your wife to sign the personal guarantee.

See also: http://info.corbettlaw.net/lawguru.htm

Read more
Answered on 4/28/11, 6:11 pm
Barry Gartenberg Barry F. Gartenberg LLC

The answer is largely going to depend on what obligations she agreed to guarantee. As note previously, the the lease, guarantee and complaint (i.e., lawsuit) must be reviewed. But as a general rule, not being a "daily worker" or owner of the business will probably have little impact. Imagine a person who "co-signs" (i.e., guarantees) a car loan for another person. The mere fact that the co-signer doesn't own or ever used the car is irrelevant to the obligation to make the lender whole. Please have your wife contact me ASAP so that we may explore her options and protect her legal rights. 973-921-0600.

Kindly note and remember that my response is merely a general comment on the law related to your question, and NOT legal advice or opinion. Also, your question and my response does NOT create an attorney-client relationship between us. You cannot rely upon what I have written, because I do not have all of the information that I need to advise you or render an opinion. Even simple facts you have not shared can completely change my answer. For me to give you legal advice or opinion, you would need to hire me to be your lawyer, and then we would need to discuss this in detail and go over the documents.

IRS CIRCULAR 230 DISCLOSURE: As required by U.S. Treasury Regulations governing tax practice, you are hereby advised that written advice contained herein (if any) was not written or intended to be used (and cannot be used) by any taxpayer for the purpose of avoiding penalties that may be imposed under the U.S. Internal Revenue Code.

Read more
Answered on 4/28/11, 6:56 pm
Kevin B. Murphy Franchise Foundations, APC

As a Franchise Attorney I agree with the above attorney answers. As a personal guarantor, your wife is on the hook for any lease-related violations. Soil contamination lawsuits are VERY expensive and damages can be even more expensive. Consult with a good business or franchise attorney in your area for specific advice as soon as possible.

Mr. Franchise - Kevin B. Murphy, B.S., M.B.A., J.D.

Franchise Foundations, a Professional Corporation

Read more
Answered on 4/29/11, 5:40 am
Larry Raiken Larry S Raiken LLC

Ihave read the previous answers. while I agree you should sit down with an attorney to review your options.

Read more
Answered on 4/29/11, 6:52 am
Robert Davies The Davies Law Firm, P.A.

Your wife has a huge problem. Get a lawyer on it immediately.

I am in Hackensack, just across the George Washington Bridge. Let me know if I can help.

Robert Davies, Attorney 201 820 3460

Read more
Answered on 4/29/11, 8:06 am


Related Questions & Answers

More Business Law questions and answers in New Jersey