J.Z.’s Toy World, Inc. (J.Z.) (defendant) entered into a lease agreement with Val-Ford Realty Corp. (Val-Ford) (plaintiff). J.Z.’s rental payments were guaranteed by an individual (defendant). When defendants failed to pay the rent, Val-Ford sued them and moved for summary judgment. Defendants conceded signing the lease and the guarantee but contended that the parties mutually intended such documents to be a sham created for the purpose of defrauding Val-Ford’s construction lender. The individual defendant served as a corporate director of Val-Ford. The New York Supreme Court denied Val-Ford’s motion for summary judgment. Val-Ford appealed.