Lease Was Voidable

(Decision submitted by Jeffrey R. Metz and Patricia D. Goldstein of the Manhattan law firm of Borah Goldstein Altschuler & Schwartz, P.C., attorneys for the landlord.) Landlord sued to evict tenant and to void tenant's lease. Tenant had signed the lease with prior landlord, who was tenant's employer, under which she paid no rent in exchange for renovating the apartment at her own expense. Prior landlord, which was attempting to convert the building to a cooperative ownership, also gave tenant extraordinary rights under lease to perpetual renewal leases at rates equal to rent stabilization guidelines. The lease also gave tenant the right to sublet or assign without notice to or permission from landlord. The court ruled for landlord, and tenant appealed. The appeals court ruled against tenant. The lease was an unenforceable ''agreement to agree'' on a later lease. The lease was also voidable because landlord was insolvent when it signed the lease, and the lease was intended to delay or defraud creditors.

West 56th & 57th St. Corp. v. Pearl: NYLJ, p. 26, col. 4 (10/2/97) (App. Div. 1 Dept.; Rosenberger, JP, Wallach, Rubin, Tom, Colabella, JJ)