Adams Drug Co., Inc. v. Knobel

• Decision Date: 15 January 1985
• Citation: 64 N.Y.2d 768,485 N.Y.S.2d 983
• Parties: , 475 N.E.2d 450 ADAMS DRUG CO., INC., Appellant, v. Franklin KNOBEL et al., Respondents.
• Court: New York Court of Appeals Court of Appeals

Page 983

485 N.Y.S.2d 983

64 N.Y.2d 768, 475 N.E.2d 450

ADAMS DRUG CO., INC., Appellant, v. Franklin KNOBEL et al., Respondents.

Court of Appeals of New York.

Jan. 15, 1985.

Earl Barrison, New York City, for appellant.

J. Stanley Shaw and Jesse I. Levine, New York City, for respondents.

OPINION OF THE COURT MEMORANDUM.

The order of the Appellate Division, 102 A.D.2d 735, 476 N.Y.S.2d 569 should be reversed, with costs, and a new trial granted.

Under the fire clause of a lease providing that if more than 50% of the gross area of the building is destroyed by fire and reasonably cannot be restored to its preexisting condition within 120 days the landlord may, if he decides not to rebuild, terminate the lease, the landlord may not, though the other conditions be met, terminate the lease if he has in fact decided prior to termination to rebuild (Sabre Realty Mgt. Corp. v. Vitale, 94 Misc.2d 1035, 406 N.Y.S.2d 227; Bado Realty Co. v. Oetjen, 5 Misc.2d 914, 161 N.Y.S.2d 780). Because the Trial Judge erred in refusing to consider whether the landlord acted in good faith in giving notice of termination, there must be a new trial (Donohue v. City of New York, 54 Misc. 415, 105 N.Y.S. 1069; see, Matter of Noah's Ark v. Geib, 31 A.D.2d 886, 298 N.Y.S.2d 296, affg 56 Misc.2d 800, 290 N.Y.S.2d 453).

WACHTLER, C.J., and JASEN, MEYER, SIMONS and KAYE, JJ., concur in memorandum.

ALEXANDER, J., taking no part.

On review of submissions pursuant to section 500.4 of the Rules of the Court of Appeals (22 NYCRR 500.4), order reversed, etc.