Guarantor on the Hook for Landlord's Consequential Damages

What Happened: A landlord sued Saks, Inc., for failure to honor a corporate guaranty of its subsidiary’s obligation to pay rent under its shopping center lease. Saks owes us attorneys’ fees and consequential damages covering the loss in the property’s value we suffered due to its breach, the landlord argued. Saks denied liability for consequential damages since such losses were unforeseeable at the time the lease was signed.

Ruling: The Northern District of Illinois federal court sided with the landlord.