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United States District Court for the Southern District of New York
October 8, 1998, Decided ; October 8, 1998, Filed
95 Civ. 0323 (RJW)
Plaintiff Sage Realty Corporation ("Sage") has moved, pursuant to Fed. R. Civ. P. 56(c), for summary judgment. For the reasons hereinafter stated, plaintiff's motion is granted in part and denied in part.
Sage is the managing agent of an office building located at 437 Madison Avenue, New York, New York ("437 Madison"). On June 25, 1991, Jugobanka, D.D. New York Agency ("Jugobanka"), a Yugoslavian banking corporation, entered into a lease agreement ("lease") with Sage to rent a portion of the third floor at 437 Madison for its New York branch office.
The lease, which was negotiated over a period of approximately four months beginning in February 1991, provides that Jugobanka pay Sage a fixed rent at an annual rate of $ 651,000 during the first five years of the lease, $ 735,000 for the next five years and $ 819,000 for the final five years, payable in equal monthly installments. Lease § 3.01. Jugobanka also agreed to pay [*2] Sage additional rent consisting of Operating Expense Adjustments and Real Estate Tax Adjustments plus other costs, expenses, adjustments and payments. Id. at §§ 3.03 and 3.04. The lease term was 15 years from the "Rent Commencement Date," defined as seven months after the date upon which the initial alteration work was substantially completed. Id. at § 1.01. After Sage completed initial alteration work, Jugobanka moved into the premises on or about February 28, 1992 and began paying rent seven months thereafter on September 28, 1992. Therefore, the lease term ran from February 28, 1992 to August 31, 2007.
The lease also contains a force majeure provision ("Section 33.01"), stating in relevant part that the tenant will not be excused from paying rent if the landlord is unable to fulfill any of its obligations under the lease, where the landlord is unable to do so because of a rule or order by a government agency.
Full case includes Shepard's, Headnotes, Legal Analytics from Lex Machina, and more.
1998 U.S. Dist. LEXIS 15756 *; 1998 WL 702272
SAGE REALTY CORPORATION, Plaintiff, v. JUGOBANKA, D.D., NEW YORK AGENCY, Defendant.
Disposition: [*1] Plaintiff's motion for summary judgment granted in part and denied in part and Sage awarded judgment in the amount of $ 907,324.01 together with interest and costs.
lease, rent, premises, pay rent, summary judgment, landlord, re-letting, reasonably foreseeable, force majeure, sanctions, commercial frustration, expenses, damages, excused
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