National Conversion Corp. v. Cedar Building Corp.
New York Court of Appeals
246 N.E.2d 351 (1969)
Tenant National Conversion Corp. (plaintiff) rented industrial property from landlord Cedar Building Corp. (defendant) under a lease that incorrectly specified the property was zoned for unrestricted use. Lawyers represented both sides negotiating the lease. When the tenant’s lawyer sought an adjournment to check the zoning restrictions, the landlord’s lawyer (who was also one of its principals), responded that the landlords knew the area and knew the property was zoned unrestricted. The parties incorporated that representation into the lease, with a clause specifying that the landlords guaranteed it. After discovering the industrial zoning, the tenant sued for fraud and breach of warranty, with the landlords countersuing to recover rents and possession of the property. The trial court entered judgment for the tenant, but the landlord appealed, arguing that a misrepresentation of law, not fact, cannot provide a predicate for fraud. The appellate court affirmed with two judges dissenting and the landlords appealed again.
Rule of Law
Holding and Reasoning (Breitel, J.)
What to do next…
Unlock this case brief with a free (no-commitment) trial membership of Quimbee.
You’ll be in good company: Quimbee is one of the most widely used and trusted sites for law students, serving more than 724,000 law students since 2011. Some law schools—such as Yale, Berkeley, and Northwestern—even subscribe directly to Quimbee for all their law students.Unlock this case briefRead our student testimonials
Learn more about Quimbee’s unique (and proven) approach to achieving great grades at law school.
Quimbee is a company hell-bent on one thing: helping you get an “A” in every course you take in law school, so you can graduate at the top of your class and get a high-paying law job. We’re not just a study aid for law students; we’re the study aid for law students.Learn about our approachRead more about Quimbee
Here's why 724,000 law students have relied on our case briefs:
- Written by law professors and practitioners, not other law students. 45,600 briefs, keyed to 983 casebooks. Top-notch customer support.
- The right amount of information, includes the facts, issues, rule of law, holding and reasoning, and any concurrences and dissents.
- Access in your classes, works on your mobile and tablet. Massive library of related video lessons and high quality multiple-choice questions.
- Easy to use, uniform format for every case brief. Written in plain English, not in legalese. Our briefs summarize and simplify; they don’t just repeat the court’s language.