Magnaleasing, Inc. v. Staten Island Mall, Blackfriars Realty Corp., and Tottenham Realty Corp.

Magnaleasing, Inc., a wholly owned subsidiary of the Magnavox Company engaged in the business of leasing property for use by Magnavox and its retail distributors, brought this diversity action under New York law claiming that the Staten Island Mall had fraudulently induced it to enter into a lease. It asserted that the Mall misrepresented the rate and volume of leasing at the Mall and its estimates of common area and real estate tax charges. Judge MacMahon granted judgment for the plaintiff, rescinding the fifteen year lease between Magnaleasing and the Mall. He referred the question of…