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Contracts Keyed to Barnett
Mutual Life Insurance Co. of New York v. Tailored Woman
Citation:
309 N.Y. 248, 128 N.E.2d 401 (1955)Facts
Mutual Life Insurance Company owned a building at 742 Fifth Avenue in New York City. Tailored Woman, Inc. initially leased the first and second floors under a 1929 lease that required payment of a fixed rent plus a percentage of gross receipts from sales “in, at, or from the demised premises.” The lease was renewed in 1939 with similar terms. In 1943, Tailored Woman leased the third, fourth, and fifth floors of the same building under a separate lease with different terms. When calculating percentage rent for the first and second floors, Tailored Woman excluded sales from the upper floors, leading to this dispute. The landlord argued that all sales should be included in the percentage rent calculation since they were all part of the same business operation.
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