Marburt Holding Corp. v. Picto Group

In Marburt Holding Corp. v. Picto Group, 5 AD2d 617 [1st Dept 1958], the Court discussed the different obligations of a tenant versus guarantor. In doing so, the Court reasoned that where a personal guaranty of a lease is executed guaranteeing full performance of the lease up to an aggregate amount, this does not amount to a landlord/tenant relationship and that a guarantor is not a primary or joint obligor but assumes secondary liability which only accrues upon a default by the tenant. The Court further stated that a "guaranty in its technical and legal sense has relation to some other contract or obligation with reference to which it is a collateral undertaking, it is a secondary and not primary obligation". Thus, despite the guarantor's payment of rent to the landlord, the Court found that it was improper to treat the guarantor as a tenant.