SURRENDER DIDN’T EXCUSE OBLIGATION TO PAY RENT
After it was hit with a $220,504.17 judgment (for not paying its rent), HLL appealed.
And on its review of the record, the Appellate Division, First Department, noted that while HLL claimed that it had ceased operations back in Marchof 2020 (due to the COVID-19 pandemic), and that it had surrendered the premises by “operation of law,” there was nothing in the record which relieved the tenant of its obligations to pay its rent through the balance of the lease term.
In fact, back in December of 2020, the owner sent HLL a letter noting that while it accepted the surrender it was reserving all rights to contractual damages.
Since the tenant failed to present evidence which supported any other outcome, the AD1 “unanimously affirmed” the underlying determination and left the judgment undisturbed.
Would you call that a value judgment?
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DECISION