Practice point: Real Property Law § 240(3) provides that "[e]very instrument creating
[or] transferring . . . real property must be construed according to the
intent of the parties, so far as such intent can be gathered from the
whole instrument, and is consistent with the rules of law." Where a deed admits more
than one interpretation, the courts will look beyond the written
instrument to the surrounding circumstances.
Student note: Courts may, as a matter of interpretation, carry out
the intention of a contract by transposing, rejecting, or supplying
words to make the meaning of the contract more clear. However, such
an approach is appropriate only in those limited instances where some
absurdity has been identified or the contract would otherwise be
unenforceable, either in whole or in part.
Case: Al's Atl., Inc. v. Shatma, LLC, NY Slip 05604 (2d Dept. 2013).
Here is the decision.
Tomorrow's issue: Punitive and compensatory damages.
