Law.com Subscribers SAVE 30%

Call 855-808-4530 or email [email protected] to receive your discount on a new subscription.

Landlord & Tenant

By ljnstaff |
November 02, 2017

Retention of Tenant's Check in Lockbox
Scarborough Manor Owners Corp. v. Robson
NYLJ 9/11/17, p. 21, col. 4
AppTerm, 9th and 10th Districts
(memorandum opinion)

In co-op corporation's summary holdover proceeding against a proprietary lessee, the latter appealed from Justice Court's award of possession to landlord. The Appellate Term affirmed, holding that landlord had not waived its right to terminate by accepting rent from tenant.

Co-op corporation brought the holdover proceeding alleging that proprietary lessee had failed to maintain her unit in accordance with house rules and the provisions of the proprietary lease. At a nonjury trial, tenant moved to dismiss, alleging that landlord had accepted rent for the month after the co-op corporation's termination of the proprietary lease and before the co-op commenced the summary proceeding. Although the co-op board had instructed the managing agent not to accept rent from proprietary lessee, she nevertheless deposited a rent check into a bank lockbox. Proprietary lessee contended that the co-op had therefore accepted the rent and waived its right to terminate or, in the alternative, had accepted the rent and established a month-to-month tenancy, which would require landlord to serve a new 30-day notice. Justice Court rejected these arguments and entered a judgment of possession for the co-op corporation.

In affirming, the Appellate Term concluded that landlord had taken no action that constituted a knowing waiver of its right to terminate the lease. The court also held that because neither the co-op corporation nor its managing agent knew of proprietary lessee's deposit of the rent check, the co-op corporation had not accepted the rent check. As a result, no month-to-month tenancy had been established.

This premium content is locked for Entertainment Law & Finance subscribers only

  • Stay current on the latest information, rulings, regulations, and trends
  • Includes practical, must-have information on copyrights, royalties, AI, and more
  • Tap into expert guidance from top entertainment lawyers and experts

For enterprise-wide or corporate acess, please contact Customer Service at [email protected] or 877-256-2473

Read These Next
How Secure Is the AI System Your Law Firm Is Using? Image

In a profession where confidentiality is paramount, failing to address AI security concerns could have disastrous consequences. It is vital that law firms and those in related industries ask the right questions about AI security to protect their clients and their reputation.

COVID-19 and Lease Negotiations: Early Termination Provisions Image

During the COVID-19 pandemic, some tenants were able to negotiate termination agreements with their landlords. But even though a landlord may agree to terminate a lease to regain control of a defaulting tenant's space without costly and lengthy litigation, typically a defaulting tenant that otherwise has no contractual right to terminate its lease will be in a much weaker bargaining position with respect to the conditions for termination.

Pleading Importation: ITC Decisions Highlight Need for Adequate Evidentiary Support Image

The International Trade Commission is empowered to block the importation into the United States of products that infringe U.S. intellectual property rights, In the past, the ITC generally instituted investigations without questioning the importation allegations in the complaint, however in several recent cases, the ITC declined to institute an investigation as to certain proposed respondents due to inadequate pleading of importation.

The Power of Your Inner Circle: Turning Friends and Social Contacts Into Business Allies Image

Practical strategies to explore doing business with friends and social contacts in a way that respects relationships and maximizes opportunities.

Authentic Communications Today Increase Success for Value-Driven Clients Image

As the relationship between in-house and outside counsel continues to evolve, lawyers must continue to foster a client-first mindset, offer business-focused solutions, and embrace technology that helps deliver work faster and more efficiently.