Category Archives: Real Estate

Commercial Lease Required Redelivery of Space at End of Term in Same Condition as at Start

This was originally posted on the SGR Blog.

Court Adjudicates Consequences of Tenant’s Removal of Improvements Made by Landlord

Commercial leases often require the tenant to vacate and deliver the space back to the landlord at the end of the term in the condition of the premises at the beginning of the lease. But, as a recent case illustrates, the landlord and tenant may disagree on whether or not certain improvements may or may not be removed where the cost of installation was shared by the parties.

Wallkill Medical Development, LLC, as landlord, and Medi-Fair, Inc., as tenant, entered into a 10-year commercial lease with regard to the ground floor of a newly constructed medical office building located in Middletown.

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Firearms Seized From Nassau Homeowner By Police

This was originally published on the SGR Blog.

Court Addresses Conversion Claim Against the County

The Nassau County Police seized a virtual armory from a private home. The owner of the guns sued the County for conversion. Would his claim survive a motion to dismiss?

On March 20, 2007, one day after an incident at the office of United States Representative Carolyn McCarthy, the police removed from the home of Gabriel Razzano 15 registered handguns and nine “longarms.” The police issued receipts which contained language tracking that of Penal Law § 400.05 with respect to the disposition of surrendered firearms. Specifically, the receipts stated:

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Excavation Causes Neighboring Property to Bulge and Crack

This was originally published on the SGR Blog.

Was Insurance Claim Barred by “Earth Movement” Exclusion?

Commercial insurance policies often provide generic risk coverage, but that general coverage is often concurrently limited in scope by specific exclusions. As a recent case illustrates, the Court may be required to navigate the exclusions to determine if coverage liability exists.

Great American Insurance Company of New York issued a risk property insurance policy to 3502 Partners LLC, insuring property located at 35-02 Northern Blvd., Long Island City, New York-a two-story brick and mortar building with multiple commercial tenants, adjacent to and directly behind a piece of property owned and maintained by the Metropolitan Transit Authority, known as the Sunnyside Yard, a 180-acre railroad yard.

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Tenant Vacates but Fails to Restore Premises at End of Lease

This was originally posted on the SGR Blog.

Was Tenant Liable for Increased Holdover Monthly Rent?

Many commercial leases require a tenant who makes alterations to the premises to restore the space to its pre-alteration condition at the end of the lease term. But what is the consequence where the tenant timely vacates but fails to restore?

605 Fifth Property Owner LLC sought damages from Luxottica Holding Corp. arising out of an alleged breach of a commercial lease. On December 1, 2009, Luxottica’s predecessor, Sunglass Hut Trading, LLC, executed a lease to take possession of a commercial space located at 605 Fifth Avenue, New York, New York. At the time the original lease was signed, the premises consisted of the basement, ground floor, mezzanine, and second floor portions of the building.

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Yorktown Heights Property Adjacent to ATV Trail Advertised by Owner as Quiet

This was originally posted on the SGR Blog.

Did Buyer Have Cognizable Fraud and Other Claims Against Sellers and Brokers?

Michael Vella purchased real property located at 2 Dellworth Drive, Yorktown Heights, New York, from Michael E. Straub and Erin L. Cummings Straub pursuant to a contract of sale dated July 9, 2018. The property was located next to several acres of state owned land.

The Straubs retained Coldwell Banker Real Estate LLC as their selling broker. Karen O’Connor executed the exclusive right to sell agreement on behalf of Coldwell.

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Coop Tenant Claims Fans on Roof Targeted Her West End Ave Apartment

This was originally published on the SGR Blog.

Court Adjudicates Panoply of Claims, Counterclaims, and Defenses

Martha Schwartz alleged that 170 West End Owners Corp illegally installed and/or manipulated industrial fans on the roof of the building directly above her apartment. Schwartz was a tenant in apartment 30E at the building, a cooperative governed by Owners Corp.

Schwartz alleged that in 2009 Owners Corp. relocated a certain number of industrial fans directly above and/or near her top-floor apartment, in an attempt to force her out of the building. She alleged that in 2012 Owners Corp. manipulated the fans to direct polluted and freezing air into her apartment, and testified that she witnessed the fans in different locations by visiting the roof on various occasions both before and after 2009. Schwartz alleged that the relocation and manipulation of the fans caused excessive noise, vibrations, and odors in her apartment which continued and that her health declined as a result of these conditions.

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Proprietary Lease Did Not Give Unit Owner Exclusive Right to Parking Space

This was originally published on the SGR Blog.

Did Coop’s Course of Conduct Effectively Grant Such Exclusivity?

Sara Baer asserted causes of action for a declaratory judgment, breach of contract, and trespass to chattel, and sought a permanent injunction against 825 Ocean Corp. She alleged in her complaint that she was the proprietary lessee and holder of cooperative shares for unit 2D at 930 East 7th Street in Brooklyn. In 2004, when she purchased those shares, she was told that a parking space was provided, which was ancillary to the premises. She further alleged that the parking space was provided for in the proprietary lease and that her decision to purchase shares within the building was based upon her right of continuing use of the parking space. She contended that, on or around February 2011, Ocean Corp. sought to allow another person to use, and sought to keep her, from continuing to use the parking space.

Ocean Corp. moved for an order granting summary judgment and dismissing the complaint, and contended that the complaint should be dismissed as Baer’s causes of action were all premised on the claim that she had possessory right and interest in the parking space because, as a non-resident shareholder, pursuant to the Ocean Corp.’s policy regarding the use and distribution of parking spaces, Baer was not entitled to utilize a parking space. Since Baer did not reside in the apartment, she was not entitled to use of the parking space.

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Commercial Tenant Alleges Numerous Violations of Lease by Landlord

This was originally published on the SGR Blog.

Court Adjudicates Legal Sufficiency of Nine Causes of Action

Gotham Real Estate Developers LLC leased the entire second floor of 432 Park Avenue South from 432 Park South Realty Co LLC. The lease commenced July 1, 2015 and expires December 31, 2026.

In or around the spring of 2016, Gotham claimed the premises HVAC stopped working and Park Ave South failed and refused to undertake the necessary repairs or replacements, causing Gotham to replace the unit so as to mitigate its damages and to continue its normal business operations.

On March 18, 2018, Park Ave South received a summons from the New York City Department of Buildings for its “failure to submit acceptable 8th round report of critical examination documenting condition of exterior walls and appurtenances required[.]” On October 26, 2018, Park Ave South filed the required compliance document with the DOB, showing the building’s facade to be “unsafe.” Soon after, Park Ave South hired A. Rodriguez Construction LLC (ARC). In December 2018, ARC began work to fix the building’s century-old terra cotta façade, a project which, photographed documentation showed, entailed extensive scaffolding and netting around the entire building.

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Installation of Fence Cut Neighbor’s Underground Electrical Lines:

This was originally posted on the SGR Blog.

But Repairs Increased the Value of the Damaged Property

Homeowners William Bartle and Robert Whitman sued Poly Enterprises in City Court of Little Fall, Herkimer County, for $4,152 for damage to an underground electrical line during the installation of a fence. The lawsuit went to trial before the Court.

There was no substantial factual difference in the testimony. There was some disagreement about whether or not the homeowners approved the actual location of fence in proximity to the marked underground electrical lines. The essential disagreement was about whether or not the Poly was liable for electrical wires that were damaged during the course of the fence installation. The Court did not find it necessary to decide whether or not the homeowners approved the location of the fence because Poly would still have a duty to keep from breaching the electrical lines.

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Courier Injured in Fall in Premises Leased by FedEx:

This was originally published on the SGR Blog.

Was Out-of-Possession Landlord Liable for the Injury?

Julia M. Frenza sought monetary damages for personal injuries allegedly sustained on September 18, 2018, when she tripped and fell due to a crack in an interior floor of premises owned by Four State Commercial Developers LLC (FSCD).  At the time of her accident, Frenza was working as a courier for Federal Express Corporation (FedEx) at the premises, which was leased and operated by FedEx as a warehouse. The accident occurred inside a facility in an area used to house vehicles. Frenza claimed that FSCD was negligent in failing to properly maintain and repair the interior flooring.

FSCD contended that it could not be held liable for Frenza’s injuries, since it was an out-of-possession landlord with no on-going presence at the premises and with limited access to the premises under its lease with FedEx. In addition, FSCD argued that the lease made FedEx solely responsible for the repair and maintenance of the interior ground where the allegedly hazardous condition was located. Finally, FSCD claimed that the crack in the ground did not constitute structural damage for which an out-of-possession landlord would normally be responsible. FSCD moved to dismiss the complaint.

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