Court of Appeals of New York

In this case involving a dispute over future rental payments sought under an acceleration clause from an out-of-possession tenant after termination of the leasehold agreement, order granting plaintiff landowner summary judgment on the issue of liability and awarding damages in accordance with the parties' stipulation is modified by remitting the case to the Supreme Court for further proceedings, and as so modified, affirmed, where: 1) the acceleration clause is not per se invalid merely because the landowner terminated the lease and the tenant is no longer in possession; but 2) defendant-tenants should have been permitted to present evidence in support of their contention that the undercounted acceleration of all future rents constitutes an unlawful penalty.

Appellate Information

• Decided 12/18/2014
• Published 12/18/2014

Judges

• Rivera

Court

• Court of Appeals of New York

Counsel