Estate of Katz CA4/3

FACTS AND PROCEDURAL HISTORY

David Katz (decedent) and his wife, Constance Katz, were shareholders of DCK Corporation, Inc. In 1998 DCK entered into a lease (Lease) for premises owned by respondent. Decedent and Constance each executed a written Guaranty of the Lease (Guaranty). Pursuant to two addenda, the term of the Lease was extended to July 2016. And each Guaranty was reaffirmed at the time of the extensions. Decedent died in December 2010 with Constance following within a month. Decedent’s estate owned 100 percent of DCK’s estate. After petitioner contacted

2 respondent seeking to reduce the rent under the Lease, respondent filed its creditor’s claim against decedent’s estate. It asserted a “continuing contingent interest” in decedent’s Guaranty for the amount due over the balance of the leasehold term. Petitioner filed an amended Petition to Provide for Contingent Creditor Claim of respondent which alleged the rent payments due respondent were current and the business occupying the premises was viable, making respondent’s claim “totally contingent.” Petitioner sought an order that funds equal to up to one year’s worth of rent plus common area charges be deposited in an…