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Contracts Keyed to Barnett
J.N.A. Realty Corp. v. Cross Bay Chelsea, Inc.
Citation:
366 N.E.2d 1313 (N.Y. 1977),Facts
Cross Bay Chelsea, Inc. operated a restaurant on property leased from J.N.A. Realty Corp. under a 10-year lease with an option to renew for another 10 years. The tenant invested approximately $40,000 in renovations to convert the premises into a restaurant. The lease required written notice of intent to renew at least six months before expiration. The tenant failed to provide timely notice, only realizing the oversight after the deadline had passed. Upon receiving late notice, the landlord rejected the renewal and commenced eviction proceedings. The tenant claimed it had always intended to renew, had made this intention known through various actions, and that forfeiture of its substantial investment would result in significant hardship.
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