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Landlord & Tenant Law
Illegality Defense Raises Questions of Fact
TM 18 Realty, LLC v. Copper Wang, Inc., 2023 WL 8792623, AppDiv, Second Dept. (memorandum opinion)
In landlord's action for breach of contract, tenant appealed from Supreme Court's denial of its summary judgment motion dismissing causes of action for breach of the lease and for account stated. The Appellate Division modified to grant the motion with respect to the cause of action for account stated, but otherwise affirmed, holding that questions of fact remained about tenant's defense of illegality.
Landlord leased the premises to tenant for the express purpose of operating a scrap metal business of the premises. Tenant contended that the certificate of occupancy did not permit that use, and that the lease was void for illegality. Landlord then brought this action for unpaid rent, alleging breach of contract and also seeking recovery for account stated. Supreme Court denied tenant's summary judgment motion, and tenant appealed.
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