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Do landlords have to sue corporation first in california before personal guarantor?

Having a dispute with a tenant or landlord? Rental Law discussion

Do landlords have to sue corporation first in california before personal guarantor?

Postby gall » Fri Feb 24, 2012 7:17 pm

I signed a lease on behalf of a corporation on an apartment in California. Now the landlord is chasing ME for the personal guarantee, but they have made NO effort to sue or collect from the corporation. In the state of California, is the landlord required to pursue the actual tenant on the lease (the corporation) before going after the personal guarantor?

Are there any other laws that might help me get this off my personal credit? Landlord turned it in to a collection agency that has put it on my personal credit as a collection. help?
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Do landlords have to sue corporation first in california before personal guarantor?

Postby rumford » Fri Feb 24, 2012 7:23 pm

No, since the guarantor literally agreed to pay all bills in case the other party did not they can be sued right off the bat. They already agreed to pay it, so the lawsuit is a slam dunk.
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Do landlords have to sue corporation first in california before personal guarantor?

Postby delton » Fri Feb 24, 2012 7:30 pm

No, since the guarantor literally agreed to pay all bills in case the other party did not they can be sued right off the bat. They already agreed to pay it, so the lawsuit is a slam dunk.
Depending on the language of the agreement, but most leases state that the Lessor can go after all parties both "separately and severally". Meaning that the Lessor can go after any of the Lessee's (either the corporation or the individual). A corporation is not necessarily the first one in line for collection. The landlord can first go after whoever he thinks he can collect from.
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Do landlords have to sue corporation first in california before personal guarantor?

Postby byron92 » Fri Feb 24, 2012 7:32 pm

No. You are liable upon the default of the principal, unless your agreement to pay was conditional upon the landlord first filing suit against the corporation.

But, you can sue the corporation for whatever amount of money you are forced to pay the landlord as a result of your guarantee.
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Do landlords have to sue corporation first in california before personal guarantor?

Postby norwyn » Fri Feb 24, 2012 7:40 pm

If you needed a co-signer for the obligation then they can chose whomever has the money to go after in suing for the obligation.
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