On May 26, 2023, Justice Chan of the New York County Commercial Division issued a decision in Itria Ventures LLC v. Singh Oil Corp., 2023 NY Slip Op. 31809(U), holding that summary judgment in lieu of complaint was unavailable on a guaranty that required non-payment performance, explaining:
[P]laintiffs case against Guarantors does not qualify for CPLR 3213 treatment because the Guaranty Agreements require the performance of nonmonetary obligations in addition to payment on the Loan.
Here, the Guaranty Agreement requires “the prompt payment and performance of all loans … obligations, covenants and duties owing by the Borrower to the Lender,” which, according to the Loan Agreement, included several nonmonetary obligations such as furnishing plaintiff with the annual financial statements and tax returns of Borrowers and the annual personal financial statements and tax returns of Gurpreet Singh, refraining from pledging or transferring any of the collateral without plaintiffs prior written consent, and maintaining insurance with respect to Borrowers’ property and business. While plaintiff claims that the Guaranty Agreements are eligible for CPLR 3213 treatment, it does not address the performance requirement placed on the
(Internal quotations and citations omitted).
Guarantors.