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Jan Companies of NY Holdings, LLC v. 734-40 Broadway Realty LLC, Sup Ct, New York County, May 5, 2009, Schweitzer, J, Index No. 604098/07

Posted in Commercial Lease, Industry: real estate, Justice Schweitzer, Melvin L., New York, Self Help

In a May 5, 2009 decision, Justice Schweitzer granted summary judgment to a landlord in a commercial lease dispute matter where the tenant razed the leased building, without notice to the landlord, because the building in its original state it could not accommodate the three-floor Burger King restaurant the tenant wanted to build.

The Court found that because the tenant engaged in self help in razing the building without notice to the landlord, it could not claim damages for the cost of razing the structure and rebuilding the building under any of the leases clauses which may have provided for landlord’s responsibilities with regard to maintenance of the building (the applicability of which was in dispute).

The Court further found that because the tenant demolished the existing structure before giving the landlord notice and opportunity to consider its legal exposure in light of tenant’s interpretation of the lease, the tenant remained obligated to pay rent for the entire lease term.