As Part of the 9-11 initiative, Adam Leitman Bailey, P.C. Keeps Tenant in Possession for Three Years Without Having to Pay Rent Based on Solely Technical Defenses
Issue:
Following the September 11th attacks, Candy World owner Alan Silver found himself struggling to make rent payments to his landlord, St. Peter’s Episcopal Church in the Bronx. As of May 2002, Silver was in rental arrears and in danger of being evicted. Silver’s goal was to make his rental payments affordable.
Background:
Alan Silver had been serving the people of Lower Manhattan candy for nearly three decades. Candy World, Inc. and St. Peter’s Church entered into a five-year lease agreement in July 1997. Following the September 11th attacks, Silver was forbidden from entering his store for nearly a month, after which he found nearly all of his merchandise destroyed. Like most business owners in Lower Manhattan, Silver found his business declining and was falling behind on his rent payments to St. Peter’s, at which time he was served a notice of petition. Adam Leitman Bailey, P.C. represented Candy World and Alan Silver pro bono as part of the September 11th Legal Initiative of the City Bar Fund. Adam Leitman Bailey argued that the petition should be dismissed based upon the following main arguments:
· Silver timely exercised his option to renew his lease on October 21, 2001, and was in good standing with St. Peter’s Church on this date;
· The court lacked personal jurisdiction over the respondent as Candy World, Inc. was never served with the summons and complaint.
Outcome:
Almost three years after the September 11th attacks, Adam Leitman Bailey, P.C. defeated many of the lawsuits brought against Candy World allowing him to avoid paying his rent for three years, based on the fact that the landlord could not bring a case in civil court because the lease did not set forth an adequate eviction method. Adam Leitman Bailey, P.C. was able to get Candy World rent relief dating back to September of 2001, as well as future rent in the amount of $174,623.05. Candy World was also granted permission to stay on the premises through the holiday season without paying rent up until February 28, 2005.