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Goldberg 168-05 Corp. v. Levy

Supreme Court of New York
170 Misc. 292 (1938)



Goldberg 168-05 Corp. (Goldberg) (plaintiff) leased property to Joseph Levy (defendant) for commercial purposes. The lease provided that, in addition to a set rental fee, Levy would pay a percentage of the profits from the clothing store that would occupy the space. The lease also provided that, in the event that the gross sales from the clothing store did not meet a certain threshold, Levy could cancel the lease. Levy provided notice that he intended to terminate the lease in accordance with the agreement due to poor sales. Levy then left the premises and refused to pay further rental fees. Goldberg brought a breach-of-contract suit against Levy, claiming that Levy negligently or willfully mismanaged the store, rendering it unprofitable, and intentionally diverted sales to another of his nearby stores to bring sales below the threshold for lease cancellation. Levy moved to dismiss the complaint for failure to state a claim on which relief could be granted.

Rule of Law


Holding and Reasoning (Steinbrink, J.)

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