Apparently, the building's structural integrity had been compromised by a fire and this particular lease allowed the owner to terminate the tenancy (without any predicate notice to cure) if the premises were totally damaged or rendered wholly unusable.**
Of course, when it received a termination notice, the tenant filed suit seeking an injunction stopping its tenancy from coming to an end. The tenant claimed that the incident had only impacted about 800 out of 4000 square feet of its space and that it wished to exercise its right to repair the damage (rather than have its lease ended).***
While the Supreme Court's decision is difficult to follow, the judge ultimately fashioned a very "unusual" remedy (a bit too unusual, if you ask us). He granted a preliminary injunction stopping the tenancy from being terminated but, at the same time, dismissed the case while the parties battled out their respective positions in landlord-tenant court.
Here's the decision's exact wording:
Accordingly, the plaintiff's motion for a preliminary injunction pending the determination in this Court of plaintiff's action for a declaratory judgment is granted to the extent that the temporary restraining order contained in the order to show cause is continued pending a determination of the matter in Civil Court and the motion is otherwise denied and the complaint is dismissed in anticipation of the conduct of a dispositive summary proceeding in Civil Court.
See a problem with that?
If not, let's just say, that published appellate cases harking back to the 1800's guide that the an injunction is lost, and of no force and effect, when a case is dismissed.****
So, when the judge ended the taxi garage's case, any stays were lifted and the tenancy was allowed to prematurely lapse.
"Can a judge do that?" asked friend and commentator, Dov Treiman.
I smiled and said, "A judge can do whatever she or he damn pleases ... But if that wasn't the outcome intended, then someone needs to get right back to judges' school!"
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*These injunctions are named after the seminal New York State Court of Appeals case -- First Nat. Stores v. Yellowstone Shopping Ctr. (21 NY2d 630) -- which inspired their creation. In that particular commercial lease dispute, the state's highest court concluded that once a tenancy was terminated, there was nothing that could be done to revive the arrangement. It was in that case that the court suggested that the tenant could have avoided a forfeiture of its lease had it secured an injunction from a court "stopping time" -- tolling the running of the time frame delineated in a landlord's notice. (For more on these special injunctions, please use this link: Yellowstones )
**Paragraph 9(a) of the tenant's lease provided, as follows: "If the demised premises or any part thereof shall be damaged by fire or other casualty tenant shall give immediate notice to Landlord and this lease shall continue in full force and effect except as hereinafter set forth; (b) If the demised premises are partially damaged or rendered partially unuseable by fire ... the damages thereof shall be repaired by and at the expense of Landlord and the rent until such repair shall be substantially completed shall be apportioned from the day following the casualty according to the part of the premises which is usable. (c) If the demised premises are totally damaged or rendered wholly unuseable by fire or other casualty then the rent shall be proportionately paid up to the time of the casualty and thenceforth shall cease until the date when the premises shall have been repaired and restored by Landlord subject to Landlord's right to elect not to restore the same as hereinafter provided; (d) If the demised premises are rendered wholly unuseable or (whether or not the demised premises are damaged in whole or in part) if the building shall be so damaged that the landlord shall decide to demolish it or to rebuild it, then, in any of such events, Landlord may elect to terminate this lease by written notice to tenant given within 90 days after such fire or casualty specifying a date for the expiration of the lease, which date shall not be more than 60 days after the giving of such notice, and upon the date specified in such notice the term of this lease shall expire as fully and completely as if such date were the date set forth above for the termination of this lease ...."
***Paragraph 13 provided, as follows: "Notwithstanding anything to the contrary herein contained and subject to the limitation that no substantial portion of the building of which the demised premises form a part shall be demolished or removed by Tenant without the prior consent in writing of the landlord, and, if necessary, any mortgagee, the Tenant may at any time at its own cost and expense make any alteration, building, replacement, change, addition or improvement in and to the demised premises ...."
****See, e.g., Carpenter v. Fisher, 18 AD 561, 46 NYS 5 (4th Dept 1897).