LEASE PERMITTED POST-TERMINATION DOUBLING OF THE RENT
With the context of a lease dispute, after the New York County Supreme Court directed that the defendant-tenant pay $93,276.36 per month, as “use and occupancy,” pending the conduct of a trial on the underlying merits of the parties’ claims, the defendant appealed.
On its review of the record, the Appellate Division, First Department, noted that the governing lease agreement provided that, once its tenancy was terminated, the defendant was responsible for use and occupancy payments – at double-the-rent (at the pre-termination lease rate) -- if tenant adversely remained in possession of the premises.
Citing established precedent, the AD1 didn’t think that provision constituted a “penalty,” particularly since the order was not “final,” was entered without prejudice,and the tenant could request a rent refund or rent credit should it prevail at the conclusion of the case.
Given that the lower court “providently exercised its discretion,” the AD1 allowed that "u+o" directive to stand undisturbed.
Think they’ll double-down now?
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DECISION
Synod of Bishops of the Russian Orthodox Church Outside of Russia v Preschool of Am.