Fifty States Management Corp. v. Pioneer Auto Parks, Inc.

389 N.E.2d 113 (1979)

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Nature of the Case

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Facts

Fifty States (P) and Pioneer (D) entered into a twenty-year lease for commercial property. D, the tenant covenanted to make rental payments on the first of the month. To secure these payments, P demanded that D supply a financially responsible guarantor and that P would have the option to accelerate lease payments for the entire term of the contract following the default on any monthly installment after formal notice and a grace period. Lyon (D1) executed and delivered to P in which D1 unconditionally guaranteed the payment of rent and the performance of D under the agreement. Three rent payments were made on time, and the August 1973 payment was never received by P. The envelope containing the check was incorrectly addressed and was eventually returned to P while its president was on vacation. Notice was issued, and the parties met to discuss the problem, and with no payment forthcoming, P served on D a summons and complaint seeking acceleration of the rent payments in accordance with the terms of the lease. The complaint by P was dismissed. That was affirmed by the appeals court.