Brunswick Hills Racquet Club, Inc. v. Route 18 Shopping Center Associates
Supreme Court of New Jersey
182 N.J. 210 (2005)
Brunswick Hills (plaintiff) had a lease option to enter a 99-year lease by paying $150,000 and providing timely notice; it repeatedly gave Route 18 (defendant) written and verbal notice of its intent over a two-year period but never tendered the $150,000, honestly believing (per its attorney) the payment wasn't due until final closing documents were signed. Route 18 ignored every attempt at communication for two years before its attorney finally rejected the offer long after the option period had technically expired. The trial court and appellate division both ruled for Route 18, finding Brunswick Hills failed to strictly comply with the option's terms, and Brunswick Hills appealed.
Whether a commercial landlord breaches the implied covenant of good faith and fair dealing by engaging in a pattern of evasion and non-responsiveness that denies the tenant the benefit of the parties' original bargain.