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Martinique Realty Corp. v. Hull

Superior Court of New Jersey
64 N.J. Super. 599, 166 A.2d 803 (App. Div. 1960)


The Martinique Corporation (Martinique) owned an apartment building and leased a unit to Hull in August 1957. The lease was for five years at $130 per month, which, including the security deposit, totaled $8,450 for the entire lease term. Hull paid the entire amount that month. In October, Hull agreed to exchange his apartment for a larger one, which cost $150 per month. The increase would be paid in annual installments of $240. A new lease was executed, reciting the total of $9,000 payable in installments of $150 per month, thus ignoring the prepayment. Instead, Hull was given a letter from Martinique acknowledging the prepayment and the $240 payment arrangement. Hull took possession in November. In December, Martinique sold the building to Cambrian Estates and leased it back from Cambrian. Martinique then sold its lease to Martinique Realty Corp. (Realty) (plaintiff), a separate entity. The Cambrian-Martinique leaseback agreement stated that Martinique could not accept prepayment of rent of more than one month from any sublessee. Hull refused to pay the monthly rent because of his prepayment, and Realty sued to collect unpaid rent. The trial court granted Hull’s summary judgment motion on the ground that Realty was chargeable with notice of Hull’s rights and subject to the defense of payment. Realty appealed.

Rule of Law


Holding and Reasoning (Freund, J.)

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