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Contracts Keyed to Farnsworth
Van Wagner Advertising Corp. v. S & M Enterprises
Citation:
67 N.Y.2d 186, 492 N.E.2d 756Facts
Barbara Michaels leased the eastern façade of her building to Van Wagner Advertising Corp. (“Van Wagner”) (plaintiff) with the expectation that the latter would erect a sign on the leased space. Van Wagner erected an illuminated sign and leased it to another advertising company. Michaels later sold the building to S & M Enterprises (“S & M”) (defendant), who canceled Van Wagner’s lease. In doing so, S & M sent Van Wagner a letter referencing section 1.05 of the lease. This section stated that the lessor or its successor could cancel the lease with a 60 day-notice in the event of a sale of the building to a third party unrelated to the lessor. Van Wagner abandoned the space under protest and brought suit against S & M, seeking specific performance and damages.
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