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Case Notes

By ljnstaff | Law Journal Newsletters
May 02, 2017

Fraudulent Inducement

A tenant who allegedly lied about his retirement in order to be let out of his lease and to induce his landlord to forgo extra payments he was entitled to under the law was unsuccessful in having the suit against him dismissed. 1046 Madison Avenue Associates v. Bern, 2017 N.Y. Misc. LEXIS 228 (Sup. Ct., N.Y. Cty. 1/20/17).

Defendant Fima Bern entered into a lease with the plaintiff landlord on March 11, 2012. The lease, to run through May 31, 2019, was for a basement space in a building on New York City's Madison Avenue in which the defendant would operate a shoe repair business. In November 2015, Bern and his son asked plaintiff's representative, Steven Leader, if Bern could terminate his lease early, because of Bern's advanced age and failing health. Bern told Leader that he had already found a subtenant, Lukure Inc., to take over the remainder of his lease term. He also informed Leader that Lukure had agreed to pay Bern $90,000 over and above the rent payments it would make to the landlord, as “key money.”

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