December 11, 2024

Contract law.

Defendant demonstrated that money damages are barred by a provision of the parties' commercial lease, which limits plaintiffs' damages, if any, to specific performance, injunction, or declaratory relief. Plaintiff's argument that the provision is unenforceable as against public policy is unavailing. The complaint does not allege that defendant engaged in misconduct that would constitute a willful, bad-faith breach of the lease rendering the provision unenforceable. Instead, the complaint alleges that defendant declined to reopen its business after New York State's COVID-19 in-person dining restrictions were lifted. This decision does not constitute intentional wrongdoing unrelated to any legitimate economic self-interest which would be required to find the provision unenforceable.

2M Hospitality Group, LLC v. Sahara Plaza, LLC, NY Slip Op 06003 (1st Dep't December 3, 2024)

Here is the decision.