The Appellate Division, First Department, has reversed a lower court and granted summary judgment to a landlord seeking to enforce a guaranty for a $100 million lease against shoe retailer DSW. The panel remanded the case for trial before a referee on the amount of damages.
DSW MS LLC, a subsidiary of the retailer, guaranteed the lease because its affiliate, Filene’s Basement Inc., was the original tenant at 4 Union Square South and filed for bankruptcy in 2009. The landlord is an affiliate of Vornado Realty Trust.
