Sylvia Blount [landlord] appeals from a final judgment denying recovery for breach of a lease and guaranty. For the following reasons, we reverse.
In 1983, the landlord and Dino’s Fontana di Trevi executed a lease for a restaurant. The leasehold included a liquor license. The rental payments were guaranteed by an individual, Elena Morra, in a separate guaranty. The guaranty was “not conditioned upon the genuineness, validity, regularity or enforceability of the lease.” Dino’s assigned the lease to Three Sons, Inc., in 1983 but remained fully liable for performance of all obligations under the lease. Three Sons defaulted on the lease in 1987 and abandoned the premises, causing various liens to accrue against both the real property and the liquor license for unpaid sales taxes.
In September of 1987, the landlord sued Three Sons, Inc., seeking a declaration that she was entitled to the liquor license. The landlord prevailed in that action and regained possession of the license.
In 1988, the landlord sued Morra on the lease guaranty. She later amended the action to add Dino’s as a party and to recover on the lease itself.
The trial court misapplied the doctrine of election of remedies set forth in Jimmy Hall’s. In Jimmy Hall’s, the second district held that, upon breach of a lease by a lessee before the expiration of the term,
In this case, the landlord did not resume possession of the premises when she sued to recover the liquor license in 1987. Her action was taken to protect an asset of the leasehold and did not vitiate her right to damages under the lease. See Kanter v. Safran,
Furthermore, the landlord was entitled to seek recovery of the rental payments from Morra, the guarantor. By its own unambiguous terms, the guaranty is unconditional and absolute and rendered Morra liable upon default by Dino’s. See Anderson v. Trade Winds Enters. Corp.,
In conclusion, we hold that, under either the guaranty or the lease, the landlord could recover the unpaid rent. Upon remand, the trial court shall reinstate the judgment originally entered against Morra and Dino’s, holding them jointly and severally liable for $364,580.
Reversed and remanded with directions.
Notes
. The premises remained vacant for twenty-six months while the landlord was unable to relet. In September, 1989, the premises were leased for a term of five years.
. The lease included a provision that the tenant’s liability was to "survive and continue” after a termination or repossession by the landlord.
