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Route 6 Outparcels, LLC v. Ruby Tuesday, Inc.

Supreme Court of New York, Appellate Division, Third Department
931 N.Y.S.2d 436 (N.Y. App. Div. 2011)


Ruby Tuesday, Inc. (Ruby Tuesday) (defendant) contracted to build and open a restaurant on Route 6 Outparcels, LLC’s (LLC) (plaintiff) property. The contract contained a force majeure clause that excused the parties’ performance upon the occurrence of certain events out of the parties’ control. Ruby Tuesday did not build the restaurant by the agreed upon date, citing the “global economic downturn that took hold in 2008” as implicating the force majeure provision. Specifically, Ruby Tuesday asserted that as a result of the economic crisis, it was forced to pay down its debt, thus diverting funds away from the construction of the restaurant. The LLC brought suit for breach of contract and filed a motion for partial summary judgment on the issue of breach. The trial court granted the motion. Ruby Tuesday appealed.

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Holding and Reasoning (Spain, J.)

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