Wasserman's Inc. v. Township of Middletown

The opinion of the Court was delivered by

POLLOCK, J.

Pursuant to a public advertisement for bids, plaintiff Wasserman’s Inc. (Wasserman’s) and defendant, Township of Middletown (the Township or Middletown), entered into a commercial lease for a tract of municipally-owned property. The agreement contained a clause providing that if the Township cancelled the lease, it would pay the lessee, Wasserman’s, a pro-rata reimbursement for any improvement costs and damages of twenty-five percent of the lessee’s average gross receipts for one year. In 1989, the Township cancelled the lease and sold the…