Calypso Lounge, Inc. v. Spitzer Management, Inc.

PEARSON, Judge.

The controlling question on this appeal is whether a landlord may, after the destruction of a building by fire, declare a forfeiture of the lease for default in the payment of rent due prior to the fire where the lease carried the following provision for rebuilding in the case of fire:

“In the event the building, in which the demised premises are located shall be rendered untenantable by fire . . . , the lease shall not be terminated, and the Lessors shall be obligated to rebuild. .. ."

The trial judge held that the covenant to pay rent took precedence and the lease was…