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Commercial Leasing Law & StrategyFeaturesLandlord Tenant LawLitigation

Landlord Can't Waive Illegal Use of Premises By Accepting Rent

By Scott Mollen
October 01, 2024

A landlord commenced a commercial holdover proceeding, alleging that the tenant was illegally using the premises for the retail sale of cannabis. The tenant filed an answer with counterclaims and moved for summary judgment and for the dismissal of the petition. The landlord opposed the tenant's motion and cross-moved for summary judgment and dismissal of the tenant's affirmative defenses and counterclaims.

In Aldot Holding Corporation v. Ninth Avenue Organic Deli, Civil Court, New York, Case Number: LT-307498-24/NY (Decided Aug. 9, 2024., Marcus, J.), the landlord submitted an affidavit which included inter alia, information from the NYS Office of Cannabis Management Conditional Adult Use Retail Dispensary Provisional Contract Information, pictures of the premises and products sold at the premises and several other exhibits. The court stated that the landlord had made prime facie showing of entitlement to summary judgment in this illegal use holdover proceeding.

The submissions indicated that the tenant was "selling cannabis products without NYS license to do so" and the landlord had "properly terminated respondent's lease pursuant to RPL 231 and RPAPL 715 (1) and the tenant continued to holdover and occupy the premises without the landlord's permission.

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