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Case Notes
Subtenants Not Entitled to Notice Under Law
A New York appeals court has granted summary judgment to a landlord in a commercial holdover proceeding after the court determined that subtenants were not entitled to a 30-day notice. 304 PAS Owner LLC v. Life Extension Realty LLC, NYLJ 7/11/18, p. 21., col. 1. AppTerm, First Dept. (memorandum opinion).
The lease for the subject commercial property expired on July 31, 2016. When the property was not vacated and returned to the landlord, the lessor served a 30-day notice to vacate on the tenant and then brought a commercial holdover proceeding in civil court. That court sided with the subtenants, who protested that they had not been served with a 30-day notice, and granted their motion to dismiss.
On appeal to New York's Appellate Division, First Department, the dismissal was reversed, the appeals court explaining that New York's Real Property Law section 232-a, which requires service of a 30-day notice of termination on tenants in a commercial holdover proceeding, does not apply to subtenants. Thus, the court concluded that the landlord was entitled to summary judgment on its claim for possession of the subject property.
Illegal Tenant Activity Negates Insurer's Responsibility to the Landlord
An insurer has been held not responsible for compensating a commercial landlord for property damage because the property was leased to a tenant running a marijuana-related business, and the policy excused the insurer from having to cover losses caused by “dishonest” or “criminal” acts. K.V.G. Props., Inc. v. Westfield Ins. Co., 2018 U.S. App. LEXIS 23296 (6th Cir. 8/21/18).
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