Little Carnegie Realty Corp. v. Delmonico Movienews Theatre, Inc.

273 A.D. 45, 75 N.Y.S.2d 305

This text of 273 A.D. 45 (Little Carnegie Realty Corp. v. Delmonico Movienews Theatre, Inc.) 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
Little Carnegie Realty Corp. v. Delmonico Movienews Theatre, Inc., 273 A.D. 45, 75 N.Y.S.2d 305 (N.Y. Ct. App. 1947).

Opinions

Callahan, J.

In this summary proceeding the rights of the parties are to be determined on the basis of a construction of the cancellation clause in a lease for a theatre in the city of New York.

On June 5,1941, the landlord’s predecessor in title, Carnegie Hall, Inc., entered into a written lease with Delmonico Movie-news Theatre, Inc., the assignor of the present tenant, for a term commencing July 1, 1941, and ending December 31, 1951, for premises described as follows: “ * * * the space now known as the ‘ Little Carnegie ’ motion picture theatre, comprising the ground floor of the building known as No. 146 West 57th Street and the entire building known as Nos. 141-3 West 56th Street; plus the second floor rear and the rear half of the basement of No. 146 West 57th Street; plus the basement space [47]*47in No. 139 West 56th Street which now houses the ice bunkers for the air cooling system, * *

The theatre has its entrance and lobby on the ground floor of the five-story building at 146 West 57th Street and also occupies part of the second floor as well as one half of the basement in the same building. The lounge and retiring rooms have been built into a brick-enclosed area 18 x 40 feet on the ground floor of the adjoining five-story structure at 144 West 57th Street and are also located in a one-story building erected on the rear 25 feet of the lot known as 139 West 56th Street. The remainder of the plot at 139 West 56th Street is improved with a four-story building, in the basement of which a space 8 x 18 feet is utilized for the air-conditioning plant with pipes leading to the main portion of the theatre. The auditorium of the theatre is located in a one-story building covering lots known as 141-143 West 56th Street.

While the lease itself omits any specific reference to the premises 144 West 57th Street by street number, it is apparent that the space therein occupied for lounge and rest rooms forms an integral part of the theatre premises. We attach no significance to this omission and regard that portion of these premises as much within the purview of the lease as if expressly mentioned according to' street number and designation. It may be noted that the premises 144 and 146 West 57th Street were operated as a unit with a single entrance, common hallway, one stairway, and the same elevator for both properties.

Though the demised term under the lease expires on December 31, 1951, the landlord has been awarded possession of the theatre premises pursuant to a final order in a summary proceeding based on holdover after notice of termination of the tenancy. On August 2, 1946, this notice was served on the tenant by Carnegie Hall, Inc., in purported compliance with the provisions of a cancellation clause in the lease reading as follows:

11 Cancellation 34. In the event that Landlord shall enter into a bona fide contract with interests substantially different from the present owning syndicate, for the lease and/or the sale of the demised premises in conjunction with any of the properties contiguous thereto; or if Landlord shall enter into a contract for demolition of the demised premises in conjunction with any of the properties contiguous thereto, then Landlord may, at its option, cancel this lease on or after September 30, 1943, upon giving to Tenant not less than one hundred twenty (120) days’ notice thereof in writing, by Registered [48]*48Mail with postage prepaid, addressed to Tenant at the demised premises. Such notice shall state that Landlord has entered into a bona fide contract in accordance with the foregoing provisions and that Landlord elects to cancel this lease and requires Tenant to remove from the demised premises upon the date named thereon, and thereupon this lease and the term hereby demised shall terminate upon the date so fixed, and Tenant agrees to surrender this lease and to vacate the demised premises and to deliver up the possession of the said premises to Landlord on said date, and Landlord may maintain summary proceedings for the recovery of such possession. * *

It appears that on August 1, 1946, the original lessor, Carnegie Hall, Inc., entered into a contract for the sale of the premises 144-146 West 57th Street and 139-141-143 West 56th Street described in said contract by metes and bounds. This sale embraced the several lots and buildings in which the theatre or parts thereof are located, and no additional properties. On October 3, 1946, the closing of title took place under this contract by delivery of the deed to the landlord in this summary proceeding.

The question for decision on this appeal is whether this transaction constituted a sale of the demised premises in conjunction with any of the properties contiguous thereto ” within the meaning of the cancellation clause of the lease.

The landlord urges that the premises 144 West 57th Street and 139 West 56th Street are properties contiguous to the demised premises that were sold in conjunction therewith. The tenant disputes this contention and argues that a conveyance or transfer of only those properties in which the theatre or some part thereof is located cannot be regarded as a sale embracing contiguous properties within the provisions of the lease in respect to cancellation.

The record discloses that at the time of entering into the lease the original lessor was the owner of other parcels to the west of the demised premises far exceeding in value the properties in which the theatre is situated. The largest of these properties known as Carnegie Hall occupied the block front on the east side of Seventh Avenue between 56th and 57th Streets. There were additional holdings on the south side of 57th Street extending as far east as the premises 144 West 57th Street, except the premises 148 West 57tli Street under different ownership. The original lessor also owned all of the property on the north side of West 56th Street eastwardly from Carnegie Hall to the premises 139 West 56th Street.

[49]*49With respect to this group of holdings under the single ownership of the original lessor it should he noted that the building known as 150 West 57th Street and occupied as a restaurant was Constructed to such a depth that it covered a large part of the lot at its rear. The remainder of this lot constituted less than one half thereof and was used for a small garage known as 153 West 56th Street. Immediately adjoining the restaurant and garage properties on the east were the premises 141-143 West 56th Street housing the auditorium of the theatre. Considering the buildings as distinguished from the land, it thus appears that the rear portion of the restaurant and all the garage constituted separate properties contiguous to the demised premises in that they touched along a common boundary line for a considerable distance.

It is in the light of these physical conditions existing at the time of execution of the lease that the provisions of the cancellation clause must be construed.

The answer to the question of construction thus presented must largely depend on what the word “ contiguous ” in the cancellation clause of the lease was intended to mean by the parties to that instrument. In the dictionary sense the term contiguous ” primarily signifies touching, meeting or joining at the edge, border or boundary ”. (See Funk and Wag-nail’s Standard, Century, and Oxford Dictionaries.) In real estate parlance it is also deemed to have relation to parcels of land touching along one side through coincidence of boundaries.

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Cite This Page — Counsel Stack

Bluebook (online)
273 A.D. 45, 75 N.Y.S.2d 305, Counsel Stack Legal Research, https://law.counselstack.com/opinion/little-carnegie-realty-corp-v-delmonico-movienews-theatre-inc-nyappdiv-1947.