Case Notes

The tenant operated a laundry on the premises pursuant to a lease whose original term expired on Nov. 30, 2011. A lease rider gave the tenant the option to renew for two successive five-year periods so long as the tenant notified the landlord of its intent to exercise the renewal option no later than six months prior to the expiration of the then-existing term. The rider provided for notice in writing and delivered personally or by registered or certified mail or by a reputable overnight courier service. The landlord contended that tenant did not provide notice of an intent to renew until it received notice by certified mail in November 2011. The landlord rejected that notice as untimely, and tenant vacated the premises pursuant to court order in April 2012. The tenant then brought this action for breach of contract. At trial, one of tenant's principals testified that he had an employee hand deliver a renewal notice on May 30, 2011. Although the principal did not mention hand delivery in his earlier deposition or two sworn affidavits, and although landlord's representative testified that its office was closed that day, which was Memorial Day, the Supreme Court awarded tenant judgment for $1,250,000. The landlord appealed.