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Olim Realty Corp. v. Big John's Moving, Inc.

Citations: 250 A.D.2d 744; 673 N.Y.S.2d 439; 1998 N.Y. App. Div. LEXIS 5804

Court: Appellate Division of the Supreme Court of the State of New York; May 18, 1998; New York; State Appellate Court

Narrative Opinion Summary

In this case, the defendants, a tenant company, appealed a decision by the Supreme Court, Westchester County, which granted the plaintiff landlord partial summary judgment on liability for several causes of action in a rent recovery action. The tenant, Big John’s Moving, Inc., ceased paying rent as of January 1995 and vacated the premises in March 1995. The lease allowed the landlord to accelerate rent and recover attorney's fees and late charges upon tenant default. Despite the tenant's claim that their rent obligation ended when the landlord changed the locks in March 1996, the court found that the lease permitted the landlord to reenter without terminating the tenant's liability for rent. Consequently, the court upheld the landlord's right to partial summary judgment, affirming the entitlement to the accelerated rent and additional charges under the lease. The decision was concurred by Justices Bracken, O’Brien, Copertino, and Altman, resulting in an outcome favoring the landlord with costs awarded.

Legal Issues Addressed

Landlord's Right to Rent Acceleration

Application: Upon tenant default, the landlord is entitled to accelerate rent for the remainder of the lease term as per lease provisions.

Reasoning: Under the lease terms, the landlord had the right to accelerate the rent for the remainder of the lease and to collect attorney's fees and late charges due to the tenant's default.

Lease Agreements and Tenant Obligations

Application: The tenant's obligation to pay rent continues despite the landlord's reentry into the premises following tenant default.

Reasoning: The tenant's argument that its obligation to pay rent ended when the landlord changed the locks in March 1996 was rejected. The lease explicitly allowed the landlord to reenter upon tenant default, and the tenant remained liable for rent after such reentry.

Summary Judgment in Rent Recovery Actions

Application: The court grants partial summary judgment to the landlord when there is undisputed evidence of tenant's default.

Reasoning: In a rent recovery action, the defendants appeal from a July 3, 1997 order of the Supreme Court, Westchester County, which granted the plaintiff landlord partial summary judgment on liability for multiple causes of action.