Excel Graphics Technologies, Inc. v. CFG/AGSCB 75 Ninth Avenue

1 A.D.3d 65, 767 N.Y.S.2d 99
CourtAppellate Division of the Supreme Court of the State of New York
DecidedNovember 18, 2003
StatusPublished
Cited by203 cases

This text of 1 A.D.3d 65 (Excel Graphics Technologies, Inc. v. CFG/AGSCB 75 Ninth Avenue) is published on Counsel Stack Legal Research, covering Appellate Division of the Supreme Court of the State of New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Excel Graphics Technologies, Inc. v. CFG/AGSCB 75 Ninth Avenue, 1 A.D.3d 65, 767 N.Y.S.2d 99 (N.Y. Ct. App. 2003).

Opinion

OPINION OF THE COURT

Sullivan, J.

In this action by a commercial tenant seeking a declaration of waiver as to a lease requirement of prior written consent tb subletting, the landlord appeals from the grant of the tenant’s application for a Yellowstone injunction tolling the time to cure the alleged lease violation of subletting without consent and the denial of its cross motion to dismiss the complaint pursuant to CPLR 3211 (a) (1) and (7).

Defendant is the landlord of a building known as the Chelsea Market, located at 75 Ninth Avenue in New York City, a portion of the third floor of which (the premises) is rented to plaintiff, a commercial tenant. Pursuant to a written lease dated December 1, 1991, defendant’s predecessor, Manark Associates, originally leased a portion of the building’s ground floor to plaintiffs predecessor, Trade Color Offset Corp. Subsequently, on June 5, 1995, by written agreement between Manark, as landlord, and A&D Danitoni, Inc., another predecessor of plaintiff, as tenant, that lease was amended to allow Danitoni to relinquish possession of the ground floor leased premises and take possession of the premises.

The lease provides, clearly and unambiguously, that the tenant is forbidden from subletting the premises, or any portion thereof, without the landlord’s prior written consent, which shall not unreasonably be withheld. Should the tenant wish to sublet all or any portion of the premises, the tenant is required to send its request in writing to the landlord and include with such request the name of the proposed subtenant (or its principals, if the tenant is other than an individual), the nature of its business, information as to its financial responsibility and standing and such other information as the landlord might reasonably require.

The receipt of a written request for permission to sublet triggers certain rights of the landlord under the lease. In the event [67]*67the request is for permission to sublet the entire premises, the landlord has the right to terminate the lease and recapture possession of the premises as of the proposed date of the commencement of the sublease. In determining the reasonableness of the landlord’s rejection of the request, the relevant factors under article 9.05 of the lease are, among other things, the restrictions contained in the leases of other tenants in the building, the financial condition of the proposed subtenant, the effect the proposed subtenant’s occupancy on the “operation and maintenance” of the building and whether the proposed sublease is at a rental rate less than the market rate for other space in the building. Essentially, article 9.05 affords the landlord control over who occupies the building, the purpose for which its building is used and whether the financial terms of the subleases conflict with other rentals in the building.

In addition to the rights triggered by a request for permission to sublet, the lease affords certain other protections to the landlord in the event of either an approved sublet or failure to obtain prior written consent to sublet, each of which is intended to preclude the possibility of an unintended waiver by the landlord. For example, the landlord’s consent to one subtenant does not relieve the obligation to obtain prior written consent as to future sublets (art 9.01), and the listing of the subtenant’s name on the door or building directory shall not be deemed a consent (art 9.07). The lease also contains general nonwaiver clauses providing that the landlord’s acceptance of rent with knowledge of any breach of the lease is not to be deemed a waiver of such breach (art 29.02 [b]) and that the landlord’s failure to insist on the strict performance of a lease obligation shall not be construed as a waiver (art 29.01).

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Cite This Page — Counsel Stack

Bluebook (online)
1 A.D.3d 65, 767 N.Y.S.2d 99, Counsel Stack Legal Research, https://law.counselstack.com/opinion/excel-graphics-technologies-inc-v-cfgagscb-75-ninth-avenue-nyappdiv-2003.