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BRT REALTY TRUST v. PREFERRED ENTITY ADVANCEMENT

233 A.D.2d 200 (1996)

649 N.Y.S.2d 699

BRT Realty Trust et al., Plaintiffs, v. Preferred Entity Advancement et al., Defendants In the Matter of Merrie Christie Refreshments, Inc., et al., Appellants, et al., Petitioner, v. John J. Sheehan, Respondent

Appellate Division of the Supreme Court of the State of New York, First Department.

November 19, 1996

The IAS Court's determination regarding the validity of the assignment of the net lease was premature. Although the receiver never consented to such assignment because of Merrie Christie's failure to pay pre-existing rent arrears in full, it appears that, prior to the application for the Yellowstone injunction, the assignment of the net lease to Merrie Christie was never challenged by the receiver, who accepted rent from Merrie Christie over a 44 month period. The...

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