360 Motor Parkway, LLC v. The Mortgage Zone, Inc.

25 Misc.3d 971 (Sup. Ct. Suffolk County 2009).  We represented a landlord who, after drawing down a letter of credit in the amount of $675,000, commenced an action against the tenant and subtenant, which guaranteed two month’s rent, for breach of the lease in failing to pay rent to the end of the lease term. The subtenant argued that the landlord was required to first apply proceeds of the letter of credit towards the two months of rent.  The court agreed with us that the lease required the letter of credit to be applied in a way most favorable to the landlord to minimize the losses caused by the breaching tenant and subtenant, totaling $1,094,350.23.