Landlord & Tenant Law

In landlord's action against commercial tenant, tenant appealed from Supreme Court's grant of landlord's summary judgment motion determining that tenant had not effected an early termination of the lease. The Appellate Division reversed, holding that any breach by tenant after the stated termination date did not make tenant's early termination ineffective.

The lease gave tenant the right to terminate early upon 60 days' notice of the termination date and payment of a termination fee equal to six months' rent and additional rent. The right to terminate early was conditions on the absence of an existing uncured default by tenant. Tenant provided 60 days' notice of an intent to terminate on March 31, 2021, and paid a $1.1 million early termination fee. At that time, landlord had not served tenant with any notice of default or notice to cure. Landlord, however, contended that tenant failed to comply with its leasehold obligation to remove all personal property and leave the premises broom clean upon termination of the lease. The lease provided that those obligations would survive termination of the lease. Moreover, landlord contended that tenant owed a balance of $33,128 as of the termination date. Supreme Court awarded summary judgment to landlord on its claim that tenant had not effected an early termination, concluding that tenant had not terminated the lease as of June 30, 2021 because it had not paid rent due after March 31, 2021 on a current basis. Tenant appealed.