Empanada Fresca LLC v. 1 BK St. Corp.
Empanada Fresca LLC (tenant) and Jose Rodriguez (guarantor) appealed a Supreme Court order regarding their lease dispute with 1 BK Street Corp. (landlord), which involved claims of fraud, breach of lease, and a "good guy" guaranty. The Appellate Division affirmed the dismissal of the tenant's claims for fraudulent inducement, rescission, promissory estoppel, and breach of implied covenant, deeming them duplicative or inapplicable. However, the court modified the lower court's decision, granting summary judgment to the guarantor, Jose Rodriguez, thereby dismissing the landlord's counterclaim for breach of guaranty. This modification was based on the finding that the guarantor had substantially complied with the terms of the "good guy" guaranty, despite a three-day short notice to vacate, as the landlord suffered no prejudice. Additionally, the Appellate Division upheld the tenant's right to amend its complaint to seek consequential damages, citing public policy against parties avoiding liability for gross negligence.