How should a landlord respond when one co-signer attempts to terminate a commercial lease without the other's consent?

Question

In this specific situation: 
1.  Co-Signer A does not participate in the daily business operations of the store. 
2.  Co-Signer A accuses Co-Signer B of financial misconduct, personal betrayal, and claims that Co-Signer B is an illegal immigrant. 
3.  Co-Signer B manages the store and is responsible for making rent payments. While there have been serious lease violations during the tenancy, Co-Signer B is actively addressing and mitigating these issues. 
4.  After failing to convince Co-Signer B to leave the business, Co-Signer A hires an attorney and demands that the landlord either terminate the lease or evict Co-Signer B. 
From the landlord's perspective, what is the appropriate course of action in this scenario?

Anthony Armando Nozzolillo · Answer

Greetings: 
 
A Commercial Landlord is not an arbitration, mediator, or babysitter for issues by and between its Tenants. The Landlord/Tenant-Guarantor relationship simply establishes that the Tenants enter into a "privity of contract" and "privity of estate" relationship with the Landord, where monthly payments are remitted for use of the Premises, and the Tenants, as a result thereof are entitled to quiet use and enjoyment of the Premises, and their use is to not be disturbed as long as the rent is being paid. A "guarantor" is the party who "guarantees" the rental payments in the event the Tenant's financial position becomes compromised (typically in a scenario where the Tenant is a corporate entity is where an "individual" is called upon to "guarantee" lease payments should the Tenants "dissolve" the entity). That (in additon to complying with the Landlord's lease obligations, i.e 
 (garbage removal, assuring all systems are operational, or whatever the lease dictates) is the underlying dynamic of the relationship and Landlord's total involvement. If there are "inner Tenant" issues present by and between the Tenants/Guarantors, unless the lease or guarantee dictates otherwise, the Landlord is not involved nor has standing to intercede or interfere; nor should it. This is an issue strictly between the Tenants/Guarantors, and whatever they need to do to make sure the rental payments are being made and the lease terms of the lease/guarantee are being fulfilled is between them.

*DISCLAIMER: Not to be construed as legal advice nor establish any attorney/client relationship**

James L. Arrasmith · Answer

From a landlord's perspective, your primary focus should be on maintaining the terms of the lease agreement while avoiding entanglement in personal disputes between co-signers. The lease is a binding contract with both parties, and one co-signer cannot unilaterally terminate it without the other's consent, regardless of their allegations about each other. 
 
Your best approach is to communicate in writing to both co-signers that you cannot take sides in their internal business dispute and that the lease remains valid and enforceable with both parties. If there have been lease violations, continue to document them and work with whoever is managing the property (in this case, Co-signer B) to ensure they are properly addressed. Immigration status allegations are not your concern as a landlord unless you receive official notification from authorities. 
 
If the situation escalates, you should consult with your attorney to review your rights and obligations under the lease. Keep detailed records of all communications and payments, and maintain a neutral stance focused solely on lease compliance. You can inform Co-signer A that their recourse lies in resolving their business dispute through appropriate legal channels, not through pressuring you as the landlord to terminate a valid lease agreement.

Q: How should a landlord respond when one co-signer attempts to terminate a commercial lease without the other's consent?