The guarantors allege in their state court complaint that Cerco kept the borrower’s counsel in the darkabout its intentions to interpret the guaranty as full-recourse, in contrast to the limited-recourse termsthe guarantors believed the borrower had negotiated.”It was a strategy hearkening back to the works of the painter Magritte — but instead of ‘Ceci n’est pasune pipe,’ Cerco claimed ‘this is not a carve-out guaranty’ and began to take actions, including litigation,based on their surrealistic strategy, causing plaintiffs to incur significant expenses, all in direct contradiction of Cerco’s own repeated misrepresentations,” the guarantors claimed.
AEW Partners Real Estate Fund VIII LP, Earlin Investment LP, Gregg Schenker and Steven Hornstock are represented in the state case by Robert S. Landy and Amy C. Brown of Ford O’Brien Landy LLP.