Legal
What's New Research Government Site Index Home Meetings Directories About ICSC Search ICSC Sign On Publications Education Help Messages



ICSC Legal Database - CasesMonday, February 22, 1999 05:01 PM

Case Index:
00103

Citation:
1014 Fifth Avenue v. Manhattan Realty, 111 A.D.2d 78, 489 N.Y.S.2d 204 (1985), rev'd, 67 N.Y.2d 718, 499

N.Y.S.2d 936, 490 N.E.2d 855 (1986).

Issue:
Where alleged violations by tenant of its lease agreement did not preclude the exercise of an option to renew

the lease, were such breaches sufficient to enable the landlord to defeat the option to purchase on the basis of

lack of faithful performance?

Facts:
Plaintiff entered into a lease for certain premises for an initial term of twenty-five years with two renewal options

of twenty-one years each. The lease also granted plaintiff an option to purchase the property at any time during

the first fifteen years. The right to exercise the option was predicated upon "the faithful performance by the

lessee of all the covenants, conditions and agreements required to be performed" by plaintiff under the lease.

Plaintiff gave timely notice to defendant of its intent t o purchase the property and defendant rejected the tender

as appropriate. Defendant claims that plaintiff paid its rent late on many occasions, failed to provide lessor with

a copy of all subleases, failed to provide a copy of lessee's financial stateme nts, failed to maintain the property

in proper repair, etc., and that all of these failures precluded the plaintiff from exercising the option to purchase.

Plaintiff instituted suit for specific performance and the Trial Court denied tenant's motion for s ummary

judgment. Tenant appealed. Supreme Court Appellate Division reversed and granted tenant's motion for

summary judgment. Landlord appealed.

Holding:
Reversed. The Court of Appeals held that (1) landlord's answer denied tenant's faithful performance of conditions

under lease with sufficient specificity and particularity, and (2) whether tenant failed to faithfully perform

conditions of lease presented an issue for the trier of fact.

Publication:
Legal Update

Date:
Winter 1985

Classification 1:
Landlord and Tenant

Classification 2:

Classification 3:

00103 - Legal Update - Winter 1985