Deck 42: Landlord and Tenant

Question 1

Katharine Gasparich moved her family from California to New York to be closer to the children's grandfather. The grandfather offered the family an apartment free of rent in a building owned by 247 East 32nd LLC, which was principally owned by the grandfather. Apparently, the grandfather failed to communicate this offer to the company, because 247 East 32nd brought an eviction action against Gasparich and her family. Could Gasparich enforce the oral agreement with the grandfather?

Answer 1

Legal Reasoning:
In 247 East 32 nd LLC v. Gasparich, 95 A.D.3d 790, 945 N.Y.S.2d 300, 2012 NY Slip Op 4232 (2012), the trial court determined that the agreement made between Gasparich and her grandfather could not be enforced under the statute of frauds.
Further, finding no evidence to support Gasparick's affirmative defense of irrevocable license the court dismissed the action and found for 247 East 32 nd LLc.Therefore, Gasparich COULD NOT enforce the oral agreement with the grandfather.

Question 2

What is the difference between a tenant and a lodger or roomer?

Answer 2

A tenant can be described as a person who pays some monetary amount on equal time interval and generally makes an agreement with the landlord for some specific period of time. A lodger or roomer is someone who stays informally; i.e. he/she does not sign any agreement with the landlord for specific time period.One more important difference is that the landlord generally does not live in the house he/she rents to a tenant but in case of a lodger, the landlord stays in the very same house. Since the landlord is in a legal agreement with the tenant therefore he/she cannot pass on the repairing duties to the tenant whereas this is not the case with lodgers.

Question 3

Brennan Associates owned a shopping center, and leased a unit to Physicians for Women's Health, LLC. The terms of the lease permitted an assignment to a new lessee, with the lessor's permission. After an initial five-year lease term, the parties renewed for another five years. After only two more years, Physicians vacated and moved to another location, and attempted to find a replacement tenant. Brennan wanted Physicians to find another medical services tenant. For the first two years, Physicians continued to pay the rent. Finally Physicians found a tanning salon as a prospective tenant. Brennan entered into negotiations with the tanning salon, which offered slightly different terms from the lease with Physicians, but was never able to come to an agreement. Physicians stopped paying rent, and Brennan sued. Was Brennan required to come to terms with the tanning salon in order to mitigate its damages?

Answer 3

Damage Mitigation:
A party to a contract is under the duty to make a reasonable effort to minimize costs after a breach of contract has occurred and to prevent costs from increasing.
Legal Reasoning:
In Brennan Associates (Brennan) v. OBGYN Specialty Group, P.C. (OBGYN) , 15 A.3d 1094, 127 Conn.App. 746 (2011), the trail court rendered in favor of OBGYN because Brennan failed to mitigate damages.
The appellate court reversed determining that Brennan's failure to accept the tanning salon did not constitute a failure to mitigate its damages and, thus, did not absolve the defendants of their obligations under the lease.Therefore, Brennan WAS NOT required to come to terms with the tanning salon to mitigate damages.

Question 4

What guidance is available to courts attempting to resolve a dispute between a landlord and a tenant?

Question 5

Coinmach Corp. (Coinmach) entered into a lease with the Brittany Sobery Family Ltd. Partnership (Sobery) to operate a coin-operated laundry facility in an apartment complex owned by Sobery. The lease was for a term of ten years, with right of first refusal in Coinmach to match any future lease offers from third parties. After ten years passed, Coinmach continued in possession and continued to pay the same amount of rent on a monthly basis for several years. Ultimately, Sobery executed a new lease with a third party for provision of laundry services, and demanded Coinmach vacate the premises. Coinmach responded that it was exercising its right of first refusal on the lease. Did Sobery have the right to rent to a new tenant?

Question 6

Does a lease without a definite, set time period last forever?

Question 7

Restorations Inc. and Cantarella Realty entered into a five-year lease for commercial property owned by Cantarella. The lease included a flat monthly rental for the first three years, with increases in the fourth and fifth years. It also granted Restorations an option to extend the lease up to five years on written notice two months prior to the expiration of the original term. Restorations occupied the property six and one-half years, paying the original rental price each month without the scheduled increases or formally extending the lease. At the beginning of the sixth year, Cantarella made a demand for the rent differential for lease years four and five and for market rental value during Restorations' holdover period. Restorations admitted that it had become a tenant at sufferance on the expiration of the original lease, but claimed that the payment and Cantarella's acceptance of continued rent payments created a tenancy at will for the original monthly rental price. Cantarella claimed that neither party was aware of the rent increases, and that both sides had mistakenly believed that they were proceeding in accordance with the lease terms. Does this mistake prevent Cantarella from collecting the increased rent?

Question 8

What are a landlord's options when a tenant holds over?

Question 9

King hired a laboratory to inspect and report on the mold levels in her apartment. Six different types of mold and bacteria were found, at "typical levels." None was toxic. The landlord had the tub recalked and installed an air filter. A second testing again showed "typical" levels of mold. King withheld rent, arguing that the mold condition constituted a breach of the implied warranty of habitability. Did the presence of mold entitle King to live there rent-free?

Question 10

What is the difference between an assignment of lease and a sublease?

Question 11

Explain the primary duty of a tenant.

Question 12

From what kinds of defects must a landlord protect a tenant?

Question 13

How may a lease be terminated?

Question 14

What must a tenant remove from the property at the end of a lease?

Question 15

James Hayes leased the family farm from his mother, Elma Hayes, for five dollars an acre for twenty-five (25) years, which was well below market price. Elma wanted the land to continue as a family farm, so the lease expressly prohibited assignment, subletting, or transfer of the lease. The lease immediately terminated if James stopped farming the land. When Elma passed away, her will distributed separate tracts of the farm to each of her four children. James then sold his land to a third party. When his siblings learned of the sale, they declared that the lease had been terminated, and rented to another party at market rates. Did James's sale terminate the entire lease?

Question 16

What formalities are required to create a lease?