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BATES ADV. USA v. 498 SEVENTH

291 A.D.2d 179 (2002)

739 N.Y.S.2d 71

BATES ADVERTISING USA, INC., Appellant, v. 498 SEVENTH, LLC, Respondent.

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

March 19, 2002.

Attorney(s) appearing for the Case

John B. Grant, Jr., of counsel, New York City (John F. Triggs and Glenn Burhans, Jr., on the brief; Greenberg Traurig, LLP, attorneys), for appellant.

Edward L. Sadowsky of counsel, New York City (Stacy B. Krieger on the brief; Blank Rome Tenzer Greenblatt LLP, attorneys), for respondent.

NARDELLI, J.P., ANDRIAS, ELLERIN and MARLOW, JJ., concur.

OPINION OF THE COURT

SAXE, J.

This appeal provides us with the opportunity to consider the enforceability of a rent abatement clause as liquidated damages in the context of a commercial lease. We conclude that the trial court's decision, invalidating the parties' agreed-upon rent abatement clause as an unenforceable penalty, constituted a misapplication of the law regarding liquidated damages provisions, and accordingly, we reverse.

Plaintiff Bates...

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