HLM Realty Corp. v. Morreale

The plaintiff (lessor) appeals from a decision of the Appellate Division deciding against it three questions reported by a District Court judge. The basic dispute is whether the defendant lessee is liable for rent during an additional five-year rental term for which the lessor claims the lessee agreed to pay rent by exercising an option under the lease. We agree in general with the answers given by the Appellate Division, which have the effect of denying the lessor the right to recover rent for the additional term, even though the lessee exercised the option and then vacated the premises…