Business Properties #6 v. Russell CA4/3
Defendants Braden and Stephanie Russell (the Russells) were guarantors on a lease between plaintiff Business Properties #6 (Business Properties) and defendant Umana Academy of Fine Arts, Inc. (Umana). Umana went out of business and defaulted on the lease. Business Properties sued Umana and four guarantors for unpaid rent. The jury returned a verdict in favor of Business Properties against all five defendants in the amount of $543,979. Only the Russells appealed.
The Russells contend Business Properties did not have standing to pursue this litigation. Their standing argument turns on a myopic reading of a sale agreement between Business Properties and a buyer of the shopping center that encompassed the leased premises. In the sale agreement, Business Properties transferred various intangible properties to the buyer, including guarantees associated with the shopping center.
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