Real Estate Law

ORAL NOTICE DIDN'T TRIGGER RENEWAL

Tenants frequently negotiate a right to renew their leases subject to delineated terms and conditions which are usually embodied within the agreement.

If those renewal requirements are not satisfied, a tenant risks forfeiture of its right to remain in occupancy of its space.

In Aldo Properties III, Inc. v. Lewis, the commercial lease required the tenant, Donna Lewis, to afford Aldo written notice of the tenant's election to renew the lease. Yet, Lewis purported to have "orally" triggered the extension. (Of course, the reason for Lewis's deviation from the agreement's notification requirement is not explained.)

When Aldo commenced a holdover proceeding in the New York County Civil Court, Aldo was awarded a final judgment of possession. In its affirmance of that outcome, the Appellate Term, First Department, espoused the following analysis:

Landlord was properly awarded summary judgment on the commercial holdover petition, based upon the unrefuted showing that tenant had not validly exercised the right to renew the lease. Tenant undisputedly failed to provide landlord with written notice to renew, but purportedly gave landlord oral notice. A tenant's election to renew a lease agreement must be in strict compliance with the lease terms .... Tenant's argument that equity should intervene to prevent a forfeiture was not raised below and is not preserved for appellate review ....

Where's Aldo?

(Probably back in possession of the space by now.)

For a copy of the Appellate Term's decision, please use this link: Aldo Properties III, Inc. v. Lewis

From Real Estate Law Blog posted 2007-04-19.