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FREE PEOPLE OF PA LLC v. DELSHAH 60 NINTH, LLC

8562NA. 650654/17. 8562N.

169 A.D.3d 622 (2019)

92 N.Y.S.3d 882

2019 NY Slip Op 01505

Free People of PA LLC, Appellant-Respondent, v. Delshah 60 Ninth, LLC, Respondent-Appellant.

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

Decided February 28, 2019.

The trial court correctly determined, giving due consideration to the nature of the contract and the circumstances, that the rent credits provision in the parties' lease constituted an unenforceable penalty (see JMD Holding Corp. v Congress Fin. Corp., 4 N.Y.3d 373, 379-380 [2005], citing Truck Rent-A-Ctr. v Puritan Farms 2nd, 41 N.Y.2d 420, 424-425 [1977]; see also Bates Adv. USA, Inc...

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