Contracts Keyed to Knapp
J.N.A. Realty Corp. v. Cross Bay Chelsea, Inc
Facts
The Plaintiff, J.N.A. Realty Corp. (Plaintiff), entered into a 10-year lease with Victor Palermo and Sylvester Vascellero. The lease granted the tenants an option to renew so long as they notified the landlord within six months of the termination date. The tenants then assigned their lease to the Defendant, Cross Bay Chelsea, Inc. (Defendant). The Plaintiff authorized the assignment and modified the option to renew clause only insofar as giving tenant a right to renew the lease for a period of twenty-four years, instead of ten years. During its tenancy, the Defendant had made substantial improvements to the property. After the option to renew had lapsed, the Plaintiff informed the Defendant of this fact. The Defendant then sent the Plaintiff a letter stating its intention to renew the lease. The Plaintiff refused to honor this letter and instituted proceedings to recover possession of the property. The Defendant stated they were not aware of six-month notice provision, althoug h the lower court found that the Defendant did have chargeable notice of the provision.
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