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New York Real Estate Law ReporterColumns & DepartmentsLandlord Tenant LawLitigators

Landlord & Tenant Law

By New York Real Estate Law Reporter Staff
August 01, 2023

Tenant Violated the Lease By Changing Nature of the Restaurant

BKNY1, Inc. v. 132 Capulet Holdings, LLC, 2023 WL 3486353, AppDiv, Second Dept. (memorandum opinion)

In commercial tenant's action for a judgment declaring the rights and obligations of the parties to a lease, landlord appealed from Supreme Court's denial of its motion for summary judgment. The Appellate Division modified to grant landlord's motion with respect to some provisions of the lease, holding that tenant had violated the lease by changing the nature of its restaurant.

The lease obligated the tenant to use the premises for a tapas restaurant with light cooking only, and to make no alterations or changes to signs without the landlord's approval. Landlord served notices to cure on tenant, alleging that tenant had violate the lease by converting the restaurant into a steakhouse, but changing the signage, and by making interior alterations. Tenant than brought this action for a declaration that it was not in violation of the lease. Landlord moved for summary judgment. Supreme Court denied the motion and extended tenant's time to cure any alleged defaults. Landlord appealed.

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