A call-center tenant executed a long-term commercial lease under which the landlord agreed to provide the tenant a minimum number of parking spots. After the lease was executed the landlord sold a portion of its property on which a new building was constructed. This eliminated a significant number of the parking spots to which the tenant was entitled under its lease. The tenant terminated the lease because of the landlord’s default and sued for damages. The landlord claimed the tenant did not need all of the parking spaces to which it was entitled under the lease and asserted a counterclaim seeking approximately $3M in damages from the tenant for future rent.
On cross-motions for summary judgment the Court found that the landlord’s obligation to provide the tenant a minimum number of parking spots was a material term, and that eliminating the parking spots to which the tenant was entitled breached the lease. The effect of the breach was that the termination of the lease by the tenant was proper, entitling it to substantial damages. The landlord’s claim for future rent was denied. Murray Weiner represented the tenant in the action.
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