Crystal Run Newco Llc v. United Pet Supply Inc.

• Decision Date: 11 February 2010
• Citation: Crystal Run Newco Llc v. United Pet Supply Inc., 70 A.D.3d 1418, 896 N.Y.S.2d 271, 2010 N.Y. Slip Op. 1230 (N.Y. App. Div. 2010)
• Parties: CRYSTAL RUN NEWCO, LLC, Plaintiff–Respondent–Appellant,v.UNITED PET SUPPLY, INC., doing business as The Pet Company, Defendant–Appellant–Respondent.
• Court: New York Supreme Court — Appellate Division

70 A.D.3d 1418

896 N.Y.S.2d 271

2010 N.Y. Slip Op. 01230

CRYSTAL RUN NEWCO, LLC, Plaintiff–Respondent–Appellant,

v.UNITED PET SUPPLY, INC., doing business as The Pet Company, Defendant–Appellant–Respondent.

Supreme Court, Appellate Division, Fourth Department, New York.

Feb. 11, 2010.

Hiscock & Barclay, LLP, Syracuse (Robert A. Barrer of Counsel), and Jacqueline Poole Zerilli, New Windsor, for Defendant–Appellant–Respondent.Young, Sommer, LLC, Albany (J. Michael Naughton of Counsel), for Plaintiff–Respondent–Appellant.PRESENT: SMITH, J.P., FAHEY, CARNI, PINE, AND GORSKI, JJ.MEMORANDUM:

Plaintiff (hereafter, landlord) commenced this action to recover unpaid rent and accelerated rent pursuant to the terms of its commercial property lease with defendant (hereafter, tenant). The landlord thereafter moved, inter alia, for summary judgment on the complaint, and the tenant cross-moved for summary judgment, seeking a determination that the landlord wrongfully terminated the lease, and the tenant also sought leave to amend the answer to assert counterclaims. Supreme Court denied the landlord's motion and granted that part of the tenant's cross motion for leave to amend the answer.

We conclude that the court erred in denying that part of the landlord's motion for summary judgment on the first cause of action, seeking past due rent based on the tenant's breach of the lease. The landlord met its initial burden by submitting evidence that the tenant failed to pay past due rent in the amount of $20,472.35 during the time in which the tenant remained in possession of the premises. The tenant was “obligated to pay rent for as long as [it was] in possession of the premises inasmuch as it is well settled that the obligation of a commercial tenant to pay rent is not suspended if the tenant remains in possession of the leased premises” ( Matter of First Citizens Natl. Bank v. Koronowski, 46 A.D.3d 1474, 1475, 848 N.Y.S.2d 494 [internal quotation marks omitted] ). In opposition to that part of the landlord's motion, the tenant failed to present evidence establishing that it had paid the past due rent in question for the period in which the tenant remained in possession of the premises. The tenant's “general allegations” were insufficient to raise an issue of fact to defeat that part of the landlord's motion ( Towers Org. v. Glockhurst Corp., 160 A.D.2d 597, 599, 554 N.Y.S.2d 242). Thus, the landlord is entitled to summary judgment on the first cause of action. We therefore modify the order accordingly, and we direct that judgment be entered in favor of the landlord and against the tenant in the amount of $20,472.35.

We reject the tenant's contention that the notice of default provided by the landlord was legally insufficient and thus that the tenant does not owe the past due rent in question. “Lease interpretation is subject to the same rules of construction as are applicable to other agreements” ( Matter of Cale Dev. Co. v. Conciliation & Appeals Bd., 94 A.D.2d 229, 234, 463 N.Y.S.2d 814, affd. 61 N.Y.2d 976, 475 N.Y.S.2d 278, 463 N.E.2d 619). “A familiar and eminently sensible proposition of law is that, when parties set down their agreement in a clear, complete document, their writing should as a rule be enforced according to its terms. Evidence outside the four corners of the document as to what was really intended but unstated or misstated is generally inadmissible to add to or vary the writing” ( W.W.W. Assoc. v. Giancontieri, 77 N.Y.2d 157, 162, 565 N.Y.S.2d 440, 566 N.E.2d 639). We thus conclude, based on the rules of construction applicable to leases, that the tenant failed to establish that the...