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The Leasing Hotline

By ALM Staff | Law Journal Newsletters |
August 30, 2006

WITHOLDING OF RENT

A tenant's obligation to pay rent is an independent obligation absent a set-off clause in the lease. Green 440 Ninth LLC v. Duane Reade, NY County Clerk's No. 570308/04, Supreme Court of New York, Appellate Term, First Department, Dec. 1, 2005.

The tenant occupied three floors of the landlord's premises and also occupied other space in the building, including the basement, under a sublease agreement. A pipe burst in the portion of the premises covered by the main lease, and the tenant began to withhold rent. After other proceedings initiated by the tenant, the landlord commenced a nonpayment proceeding, and the tenant asserted that it was entitled to damages because it was the landlord's negligence that caused the pipe to burst.

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