Dennis' Natural Mini-Meals, Inc. v. 91 Fifth Avenue Corp.
Court: Appellate Division of the Supreme Court of the State of New York; November 14, 1994; New York; State Appellate Court
An order from the Supreme Court of New York County, dated March 9, 1993, vacated a recommendation from a Special Referee regarding the difference between the market rental value and the rent reserved in a lease, specifically excluding the second five-year renewal option. A subsequent order on September 16, 1993, partially denied and confirmed a report from the Special Referee, setting the matter for a hearing to determine damages.
On May 13, 1994, the court awarded the plaintiff $448,860.50, which was later modified to $2,347,051.95, with interest from February 20, 1990, and without costs. The court found that the plaintiff's damages should be calculated as the difference between the market value of the premises and the rent reserved in the lease. It ruled that the fair market value must include the value of the plaintiff's renewal right, given the law's assumption of renewal when market value exceeds lease rent.
Additionally, the doctrine of judicial estoppel barred the defendant from claiming that the premises' value was less than $75 per square foot, a position the defendant had strongly asserted at trial. With the premises measuring 3,498 square feet, the court concluded that the appropriate damages awarded to the plaintiff amounted to $2,347,051.95, plus interest. The ruling was concurred by Justices Sullivan, Carro, Rosenberger, Williams, and Tom.
