United States of America v. Epstein
United States District Court for the Southern District of New York
27 F. Supp. 2d. 404 (1998)
The U.S. Department of State (plaintiff) leased the subject property to Epstein. The lease required the government’s consent for any sublease or assignment but did not state that the government could arbitrarily withhold consent. Epstein sublet the property to Fisher, who in turn sublet a part of the building to yet more subtenants. The government sought to eject Epstein, Fisher, and the various subtenants (collectively, the subtenants) (defendants). The subtenants argued that the government was required to act reasonably and in good faith in approving or rejecting subtenants because federal contract law prohibited arbitrary withholding of consent. The government argued that under New York law, it needed no justification for withholding consent.
Rule of Law
Holding and Reasoning (Chin, J.)
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