Appellate Term Affirms Lower Court's Finding That Retailer Lawfully Terminated Lease

Marc Rowin and Jennifer Chavez successfully persuaded the Appellate Term to affirm a lower court's decision in favor of a national retail chain. The appellate court ruled that the retailer had lawfully terminated a lease which had ten years remaining until the end of the term, thus saving the retailer $1.4 million in future rent. The retailer had relied on a line of decisions dating back to 1918, which held that a tenant's surrender of possession after the commencement of a dispossess proceeding terminates the lease. The landlord argued that these decisions were no longer good law, because they were based upon the use of a legal document called a "precept," which had been abolished in 1963. Lynch Rowin argued that the "precept" was not the basis of the decisions, which were still in effect.


Marc Rowin