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The Leasing Hotline
No Lease Termination When Default Cured
If the tenant timely cures its default, the owner may no longer have a viable claim to terminate the lease. Duane Reade, etc. v. Highpoint Associates IX, LLC, et al., 9878. 9879, Index 121412/02, Supreme Court of New York, Appellate Division, First Department, Jan. 18, 2007.
The tenant violated the lease by entering into an improper sublease. The landlord sought to terminate the lease. The lease provided that the tenant had a right to cure, and the landlord was required to provide the tenant with 15-days notice to cure any default. The lease further provided that the landlord could only terminate the lease if the tenant failed to cure within the 15-day period. Furthermore, the tenant was entitled to seek a Yellowstone injunction to extend its time to cure the default.
Here, the tenant timely cured the lease during the tolling period. The appellate court concluded that the tenant was entitled to a declaration that it was not in default because it had cured the default when it terminated the sublease, and the subtenant vacated the premises.
No Lease Termination When Default Cured
If the tenant timely cures its default, the owner may no longer have a viable claim to terminate the lease.
The tenant violated the lease by entering into an improper sublease. The landlord sought to terminate the lease. The lease provided that the tenant had a right to cure, and the landlord was required to provide the tenant with 15-days notice to cure any default. The lease further provided that the landlord could only terminate the lease if the tenant failed to cure within the 15-day period. Furthermore, the tenant was entitled to seek a Yellowstone injunction to extend its time to cure the default.
Here, the tenant timely cured the lease during the tolling period. The appellate court concluded that the tenant was entitled to a declaration that it was not in default because it had cured the default when it terminated the sublease, and the subtenant vacated the premises.
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