Because it couldn’t get a license to operate a restaurant/bar, Bon LLC filed suit against its landlord – Fook Luk Realty, Inc. – to compel the owner to construct an alternative exit for the building’s upper floors.
After the New York County Supreme Court denied the tenant’s request for a preliminary injunction, an appeal to the Appellate Division, First Department, followed.
While the use provision was unambiguous, the agreement didn’t require the landlord to construct a secondary exit. And although a landlord must usually provide what is “necessary” to facilitate a tenant’s “use and enjoyment” of the property, the AD1 didn’t think that meant the owner needed to create a second exit -- in this particular instance.
Was there no exit strategy?
To view a copy of the Appellate Division’s decision, please use this link: Bon LLC v. Fook Luk Realty Inc.