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Farash v. Sykes Datatronics, Inc.
Citation:
456 N.Y.S.2d 556, 90 A.D.2d 965 (N.Y. App. Div. 1982)Facts
Max M. Farash owned the Neisner Building in Rochester, New York, and claimed to have reached an oral agreement with Sykes Datatronics to lease the property. According to Farash, Sykes’ chief executive officer requested that Farash begin renovations immediately, stating “Don’t worry about the lease, it will be signed.” Based on these assurances, Farash performed extensive renovations to Sykes’ specifications, diverted resources from other business opportunities, incurred overtime labor costs to meet the promised June 1 occupancy date, and made alterations that were unsuitable for other potential tenants. Representatives from Sykes regularly inspected the renovation progress. On May 14, 1981, Sykes informed Farash that it would not rent the building. Farash sued for $1,550,000 in damages, including $750,000 for breach of the oral lease and $800,000 for the renovation expenses incurred.
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