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Wednesday, August 6, 2008

James Feigenbaum, et al. v. Frank Guaracini, Jr., et als.

07-29-08 A-0338-06T5

The question presented on appeal is whether a tenant's assignee can be held liable under the doctrine of equitable subrogation to the guarantor of the original tenant's obligation under the lease, for monies paid by the guarantor in settlement of the landlord's claim for damages on default of the lease, where the assignee did not have knowledge of the guaranty contract. We answered the question in the negative. In the opinion, we examined the principles governing contracts of indemnification, guaranty, and suretyship.