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  1. #1
    Join Date
    Jan 2012
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    2

    Default Commercial Lease Subtenant Defaulted on Rent - Who is Responsible to Pay

    My question involves business law in the state of: Hey all - the law suit is filed in NY - I live in a different state. It is a business lease - i took over the amended lease from previous owner. We both are liable - due to bad economy the business went down and now there is a law suit for $50K. There is a deposition in NY which I am not able to make it - do not have financials to hire a lawyer. The codefendant - has a lawyer representing him(lease owner). Lease owner did not do anything wrong - due to bad economy I could not sustain the business and pay the rent. If I could not go the deposition - what should I do? If the default judgement is reached - what kind of % would me and lease owner be liable for? Just to get a ball park. What else could I do to notifiy the court and so forth. Any advise would be appreciated...

  2. #2
    Join Date
    Jan 2006
    Posts
    38,867

    Default Re: Law Suit - Past Due Rent - Deposition - Co-Defendants - Percentage

    I am not understanding your situation clearly. With whom did you sign a lease? Why do you believe both you and the previous owner are liable?

  3. #3
    Join Date
    Jan 2012
    Posts
    2

    Default Re: Law Suit - Past Due Rent - Deposition - Co-Defendants - Percentage

    The landlord - leased a property to the leasee - (original person in lease) - who had a business. I purchased the business from the original person - during which time - landlord amended the lease and I was a assignee. But in the contract it states that both original person and me - jointly and serverly responsibile for the rent. I have paid rent in full when things were good. Then when economy went down - I could not pay full amount but paying what ever as agreed by the landlord. In the mean time the past due is over 50K and landlord has filed a law suit aginst both original person and me as co-defendant. Now the business is closed - so we are trying to settle this without going throgh the court. My question is - in case if this case goes before the judge - and judgemet is made - how would the judgement be - is it going to be on me or original person or both of us for 50% of the settlement amount. Just trying to figure out what might be the best way to settle this.
    Thanks a lot in advance

  4. #4
    Join Date
    Jan 2006
    Posts
    38,867

    Default Re: Law Suit - Past Due Rent - Deposition - Co-Defendants - Percentage

    both defendants would be jointly and severally liable for the entire debt. That means that each of you would owe the entire amount but the plaintiff would be limited to collecting only the total amount of the judgment, regardless of whom he collects it from.

    Additionally, the first tenant may have an action against you since you are the actual tenant and your failure to pay is what has caused him/her to be sued.

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