Owner's Future Plans Not Violation of Lease Terms

September 25, 2008

Facts: An owner and a tenant entered into a seven-year lease. The tenant made renovations to the space that fit the specific needs of its business. Shortly after, a new owner purchased the building and began renovations, some of which were on the tenant's floor—though not in the tenant's space—and made plans to close down the elevators at the end of the tenant's lease.

Facts: An owner and a tenant entered into a seven-year lease. The tenant made renovations to the space that fit the specific needs of its business. Shortly after, a new owner purchased the building and began renovations, some of which were on the tenant's floor—though not in the tenant's space—and made plans to close down the elevators at the end of the tenant's lease.

The tenant sued the owner and asked the court to stop all renovations. The tenant claimed that because the owner's current work and future plans would interfere with the tenant's right to have full, uninterrupted access to the leased space, the owner had violated the terms of the lease.

Decision: A New York trial court ruled in favor of the tenant, but limited the remedy.

Reasoning: The court explained that the tenant's request was too broad and would infringe upon the owner's contractual right to renovate its property. As a result, the court decided that the tenant should have full access to an unaltered space for the duration of the lease, and that the owner should be allowed to continue renovating the building while working around the tenant's space.

  • OSG, LLC v. 119 West 25th LLC, June 2008

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