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Sage Realty Corp. v. Jugobanka, D.D.

United States District Court for the Southern District of New York

July 2, 1997, Decided ; July 2, 1997, FILED

95 Civ. 0323 (RJW)

Opinion

MEMORANDUM DECISION

Defendant Jugobanka, D.D., New York Agency ("Jugobanka") has moved, pursuant to Rule 56, Fed. R. Civ. P., for summary judgment in its favor. 1 For the reasons hereinafter stated, defendant's motion is denied.

BACKGROUND

Plaintiff Sage Realty Corporation ("Sage") is the managing agent of an office building located at 437 Madison Avenue, New York,  [*2]  New York ("437 Madison"). On June 25, 1991, Jugobanka, a Yugoslavian banking corporation, entered into a lease agreement ("the lease") with Sage to rent office space at 437 Madison for its New York branch office.

On April 25, 1993, President Clinton issued an Executive Order ("the Executive Order") implementing sanctions blocking all Yugoslavian entities from using or accessing any of their assets located in the United States. Pursuant to the Executive Order, on June 30, 1993, agents of the Office of Foreign Assets Control of the United States Department of the Treasury ("OFAC"), revoked Jugobanka's license to conduct business in the United States. The OFAC agents, after directing Jugobanka's employees to pack their personal belongings and vacate the 437 Madison office, sealed the premises and seized Jugobanka's assets. OFAC made rental payments to Sage from Jugobanka's blocked assets through August 1994. On August 29, 1994, however, OFAC agents removed Jugobanka's remaining belongings from 437 Madison, and ceased paying rent to Sage as of September 1, 1994.

Sage served Jugobanka with a notice of default and demand for payment on December 8, 1994 as a result of Jugobanka's failure [*3]  to pay rent since September 1, 1994. Thereafter, on December 7, 1995, Sage brought the instant action to recover all amounts owed to it under the lease.

DISCUSSION

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1997 U.S. Dist. LEXIS 9301 *; 1997 WL 370786

SAGE REALTY CORPORATION, Plaintiff, -against- JUGOBANKA, D.D., NEW YORK AGENCY, Defendant.

Disposition:  [*1]  Jugobanka's motion for summary judgment denied.

CORE TERMS

lease, frustration, foreseeable, rent, unforeseeable, rental

Civil Procedure, Summary Judgment, Entitlement as Matter of Law, General Overview, Burdens of Proof, Movant Persuasion & Proof, Judgments, Evidentiary Considerations, Motions for Summary Judgment, Appropriateness, Genuine Disputes, Legal Entitlement, Materiality of Facts, Opposing Materials, Nonmovant Persuasion & Proof, Business & Corporate Compliance, Contracts Law, Standards of Performance, Discharge & Termination, Contracts Law, Impossibility of Performance, Frustration of Purpose, Preclusion of Judgments, Estoppel, Judicial Estoppel