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Goldberg 168-05 Corp. v. Levy

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


Facts

Goldberg 168-05 Corp. (Goldberg) (plaintiff) leased property to Levy (defendant) for commercial purposes. The lease provided that, in addition to a set rental fee, Levy would pay a percentage of its 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 amount, 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 left the premises and refused to pay further rental fees. Goldberg brought suit, claiming that Levy negligently or willfully allowed the clothing store to become mismanaged and, therefore, unprofitable to the point that it would not satisfy the terms of the lease. Levy moved to dismiss the complaint for failure to state a claim.

Rule of Law

Issue

Holding and Reasoning (Steinbrink, J.)

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