WHERE AMOUNT DUE UNDER LEASE WAS DISPUTED
When the landlord sought to pursue a guarantor for all unpaid rent due under the governing lease, the latter argued that it was only obligated to pay “all amounts due” and that the monies sought were not due and payable. Finding that contention had merit, the New York County Supreme Court denied the landlord’s motion for summary judgment in lieu of complaint and converted the matter to a regular civil lawsuit, or “plenary action.”
On appeal, the Appellate Division, First Department, noted that this particular landlord was alleged to have failed to have secured an appropriate certificate of occupancy and neglected to address violations issued by the Department of Buildings. Given that this lease provided a rent abatement for each day tenant was unable to occupy its space, the AD1 was of the view there was a bonafide “dispute” as to the amount due which thus precluded relief in the owner’s favor.
Think he skipped to the lieu?
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DECISION