Martin Deli v. Schumacher
| Martin Deli v. Schumacher | |
| Court | New York Court of Appeals |
|---|---|
| Citation | 417 N.E.2d 541 |
| Date decided | January 20, 1981 |
Facts
Original lease had a provisions that after five years, the lease could be renewed with a rent amount to be agreed upon. Five years into the lease, the parties could not agree upon a new rent amount.
- Mr. Schumacher = "Schumacher" = defendant = a landlord = he agreed to lease a retail store
- Martin, Jr., Delicatessen, Inc. = "Martin" = deli businessman = plaintiff = lessee
- In 1973, Martin leased a retail space from Schumacher for 5 years.
- The rent would increase from $500/month in the 1st to $650/month in the 5th year.
- After leasing the place for 5 years, Schumacher nearly doubled Martin's rent to $900/month.
Procedural History
Martin sued for specific performance asking the court to compel Schumacher to lease at the fair market value for the rent.
Schumacher won a summary judgement in the trial court.
However, Schumacher lost in the Appellate Division of New York.Issues
Is a provision in a lease that the rent for a renewed lease is to be agreed upon at the time of renewal enforceable?
Issue: Are both parties required to come to the bargaining table and agree upon a new rent amount?
Holding
No. A provision in a lease that the rent for a renewal period is to be agreed upon at the time of renewal is un-enforceable due to uncertainty.
Final holding was in favor of Schumacher.
Holding: No, there is no such enforceable clause.
Judgment
Reasons
Rule
Resources
Joseph Martin, Jr. Delicatessen v. Schumacher, 52 N.Y.2d 105, 436 N.Y.S.2d 247, 417 N.E.2d 541. (N.Y. App. Ct. 1981).
