Lakhani Enterprises's commercial lease provided that it would only
use the property as a Quiznos franchise. (Apparently, Lakhani acquired
the business from William Simpson and the parties’ asset purchase
agreement also required that the premises be used as a Quiznos.)
When the tenant lost the franchise, and opted to operate a “sandwich-type
shop,” litigation ensued.
While the New York County Supreme Court thought there were issues of fact
which warranted a trial, the Appellate Division, First Department, was
of the view that Lakhani breached the lease, and that Simpson was entitled
to a judgment in the amount of $175,000 pursuant to the terms of an underlying guaranty.
Was there no sub for that?
To view a copy of the Appellate Division’s decision, please use
this link:
12 Broadway Realty, LLC v. Lakhani Enters. USA, Corp.