“QUESTIONS OF FACT” AS TO WHETHER LANDLORD’S ACTIONS IMPACTED TENANT’S BUSINESS
After their respective motions for summary judgment – i.e., requests for pre-trial relief in their favor – were denied by a New York County Supreme Court Justice, the parties [a commercial landlord and tenant] appealed.
On its review, the Appellate Division, First Department, noted that the tenant had raised “issues of fact” as to whether it had been “constructively evicted” from its commercial space.
Apparently, while the landlord had a right to access the premises to perform “reasonably desirable” repairs, it was required to avoid “adversely or materially” impacting Tenant’s business. In this instance, while undertaking façade improvements, the owner reportedly removed the second-floor windows, allowing the space to freeze and pipes to burst. At times, the premises were also left unsecured, which allowed homeless individuals to sleep on the bottom floor. Given those contentions, the AD1 was of the view there were unresolved questions as to whether the owner had acted in compliance with its obligations under the governing lease agreement.
And while the owner asserted that the tenant had vacated the space back in 2016, and thus couldn’t assert an “eviction” claim, the AD1 didn’t find that argument availing, as the tenant left its equipment at the space, “monitored the premises periodically, maintained insurance, and continued to pay rent.” But it thought that the question as to whether the tenant had "repudiated" the lease was yet another issue best left for a formal hearing or trial.
Similarly, the landlord’s claim for legal fees and its prayer for a finding of liability of liability under the guaranty, were found to be premature, since the landlord had not yet prevailed, and it was unclear whether tenant was legally obligated to pay the rent purported to be due in light of the “constructive eviction” claim.
Given that backdrop, the AD1 ultimately concluded that the parties’ applications had been “appropriately denied.”
Think the parties found that moving?
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DECISION