In our June 2020 column, we raised various potential infirmities affecting Intro 1932-2020 (the “Guaranty Law”), which, inter alia, prohibited the enforcement of personal guaranties executed in connection with certain commercial leases. Signed into law by Mayor Bill DeBlasio on May 26, 2020, the Guaranty Law (as subsequently renewed and extended) permanently barred the enforcement of guaranties within its scope for the period from March 7, 2020 through and including June 30, 2021.
Among the issues we raised at that time was the Guaranty Law’s potential violation of the U.S. Constitution’s Contracts Clause, which states: “No state shall…pass any…law impairing the obligation of contracts.” U.S. Const. art. I, § 10, cl. 1. Our column concluded: “Given its total suspension of certain guaranty obligations, judicial review of this new law—in which one or more of the above arguments may be considered—seems inevitable.”