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Rental Guaranty – Costs

WI Court of Appeals – District III

Case Name: Home Market Investments, LLC v. Carol J. Barth

Case No.: 2021AP000763

Officials: Stark, P.J.

Focus: Rental Guaranty – Costs

Barth appeals a small claims judgment for $791.33 entered against her based upon her liability to Home Market Investments, LLC, (HMI) under a Co-Signor Rental Guaranty Agreement (the Guaranty). Barth guaranteed payment for all obligations incurred by her daughter, Tanya Rachfal, under a residential lease with HMI. The amount of the Barth judgment was calculated based upon the amount of a judgment previously entered against Rachfal. Barth argues that the judgment against her improperly includes costs and expenses incurred after the Lease terminated and items for which Rachfal was not obligated to pay under the Lease. The Guaranty applies to costs and expenses that Rachfal incurred during an extension of the Lease. However, Rachfal was not obligated to pay those amounts under the terms of the Lease; therefore, Barth is not obligated to pay them.

Reversed in part, and cause remanded with directions.

Decided 11/22/22

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