Landlord & Tenant Law

In landlord's action for rent and for a declaration that a lease remained in full force and effect, landlord appealed from Supreme Court's grant of summary judgment to tenant. The Appellate Division modified to deny tenant's summary judgment motion, holding that questions of fact remained about whether tenant had exercised its option to renew the lease.

In 2014, the parties entered into a commercial lease for a five-year term with an option to renew. The lease required tenant to exercise the option at least six months before expiration of the initial lease. Tenant did not timely exercise the option, but before the initial lease expired, tenant, by both email and voice mail, notified landlord that it wished to enter into a new five-year tenancy under a new lease to be drafted by landlord. One of the emails explicitly refereed to the item in the original lease that gave tenant an option to renew. Landlord indicated that it would follow up with appropriate paperwork, but never actually prepared a new lease. Tenant continued in occupation for more than two years past the expiration date of the original lease, making payments in accordance with the rent provided in the renewal provisions of the initial lease. At that point, tenant vacated and stopped paying rent. Landlord then brought this action for a declaration that the renewal lease remained in effect, and for rent due under that lease. Supreme Court awarded summary judgment to tenant, concluding that no renewal lease was in effect and that tenant had occupied as a holdover until the time it vacated. Landlord appealed.