點評
微信
微博LANDLORD WITH $400K JUDGMENT VS. COMMERCIAL TENANT PROCEEDS AGAINST GUARANTOR; HOSPITAL COLLECTS $500K FROM SON WHO GUARANTEED VISITING FATHER’S BILLS
時間:07/31/2020
瀏覽: 21753
What are friends for? Friends of course like to help each other. But to what extent and what favors can you ask from a friend? Client’s friend wanted to set up a restaurant. Friend was a chef who had just graduated from culinary school. His idea was to serve street food from his home country in a nice setting here in Southern California. That seems like a good idea. Friend chose a restaurant that had closed down and renovate it. Landlord agreed to lease friend the premises if he could get another person to guarantee the lease of $20K a month because friend’s creditworthiness was not good enough.
CLIENT AND FRIEND GREW UP TOGETHER IN HOME COUNTRY
Client and friend had grown up together in their home country and went to the same high school together. They were not the best of friends, but let’s just say that they were good friends. Client migrated to Los Angeles first about 5 years ahead of friend. Then friend wrote to client saying that he was going to attend culinary school in San Francisco. They met up with each other once in a while to catch up after friend arrived. Client brought friend around Los Angeles, bringing him to Universal studios and Disneyland. Client also brought friend to try many restaurants specializing in different cuisines. Client even brought friend to the very high priced restaurants. He brought him to Mr. Chow in Malibu and paid $500 for dinner for two. Mr. Chow has excellent service but the Chinese food is basically for white people. I understand where Mr. Chow is coming from. He migrated to London from Beijing in 1952. His father was a well-known opera star in Beijing. His purpose was to introduce high class Chinese dining to the Brits, and he did it very successfully. Kudos to Mr. Chow. If you eat at Mr. Chow once a week, you will end up paying more than your mortgage payment every month. But it has a nice ambience and the service is good.
MR. CHOW, NOBU AND DJ BIBINGKAHAN
So after Mr. Chow, client then brings friend to Nobu the next night. This is also in Malibu and owned by Robert De Niro who partnered with a Japanese chef. Let’s just say that if you have Mr. Chow for Chinese food, you have Nobu for Japanese food, you better be making at least $200K a year. Client was in fact well paid in his IT job. He does make close to $200K a year. He wanted to show his friend that he was doing well, and maybe friend can get some ideas for his own restaurant from Mr. chow and Nobu. Friend also comes from a wealthy family in their country of origin. So expensive dining is not a big deal for friend. I’ve never really been a fan of expensive dining. I go for really good food even if it’s just a hole in the wall or it’s being dished out from a street vendor. I try street food from all over the world. They are really good. Most operators specialize in a local dish for many years and have perfected the taste. This is true everywhere in the world. This is the good food that normal people eat in their own countries, which are cooked and served by street vendors at very reasonable prices. For instance, tacos al carbon tastes great from the food trucks. Or, Hainanese chicken rice in Singapore are as authentic and delicious as those made by the Chinese immigrants who brought them over. Or, the fried bebek(duck) served in Bali on the beach in Jimbaran. Or, delicious Filipino “turo-turo” (point-point) food served by DJ bibingkahan in West Covina.
CLIENT GUARANTEES FRIEND’S RESTAURANT COMMERCIAL LEASE
Client agreed to personally guarantee the commercial lease for friend’s restaurant at $20K a month for 5 years. Client did not have second thoughts about doing it for friend thinking friend would do the same for him in his time of need if that every came about. Friend’s restaurant did well initially but after a couple of months, less and less customers showed up. Apparently, friend’s cooking did not sell too well to the local taste. So after a year of operating the restaurant, friend decided to call it quits. He tried to sell the restaurant but there were no takers.
Landlord sued friend and eventually got a judgment against friend for $400K on the unpaid lease of 4 years. Well who in his right mind would pay for $400K for unpaid lease of a failed restaurant even if you come from a wealthy family abroad? Friend’s family is wealthy but not stupid. Not as stupid as client who personally guaranteed the lease. Now here comes landlord asking client to pay the $400K because of his personal guarantee. Can landlord collect from client? Yes, of course he can. Since friend has not paid the $400K judgment, client is now legally liable to pay the $400K based on his written personal guarantee. Written personal guarantees are completely legally enforceable. Verbal ones are not enforceable.
Obviously client doesn’t want to pay the $400K either. If he can qualify for Chapter 7, he needs a Chapter 7 discharge to get rid of the $400K liability so he can get a fresh start in life and be productive again. So watch out when somebody, a friend or relative, asks you to guarantee a lease or loan or whatever. Just say no, or forever regret it your moment of weakness.
SON GUARANTEES VISITING FATHER’S MEDICAL BILLS FOR STROKE
Next client is only 30. His father came to visit him here in Los Angeles from their country of origin. Client did not have the foresight of getting father travelling medical insurance to cover any medical expense that may arise during his visit. Unfortunately, father had a stroke when client brought him to see the Grand Canyon. The hospital bill to treat father totaled $500K. And with no insurance, son had to sign for all of the $500K. So if you have relatives coming to visit you, tell them or get them travel medical insurance. Son did not get father this insurance so now he’s on the hook for $500K. Chapter 7 will get him a fresh start by wiping out the $500K liability.
DISCLAIMER: NONE OF THE FOREGOING IS CONSIDERED LEGAL ADVICE. EACH CASE IS DIFFERENT.
“YOU ARE MY DEFENDER AND MY PROTECTOR. YOU ARE MY GOD; IN YOU I TRUST… SO NO DISASTER WILL STRIKE YOU…NO VIOLENCE WILL COME NEAR YOUR HOME.” PSALM 91 (written by Moses himself)
Lawrence B. Yang is a graduate of Georgetown University with a Master’s Degree in Law and specializes in Bankruptcy, Business, Real Estate and Civil Litigation. He speaks English, Mandarin and Fujian and has successfully represented thousands of clients in California, including companies overseas. Please call Angie, Barbara or Jess at (626) 284-1142 for an appointment at 20274 Carrey Road, Walnut, CA 91789 or1000 S. Fremont Ave., Mailstop 58, Building A-10 South Suite 10042, Alhambra, CA 91803.
图片翻摄自网路，版权归原作者所有。如有侵权请联系我们，我们将及时处理。
打開微信，使用 “掃描QR Code” 即可將網頁分享到我的朋友圈。
分享本頁
打開微信，使用 “掃描QR Code” 即可將網頁分享到我的朋友圈。
