Goldberg 168-05 Corp. v. Levy
Supreme Court of New York
170 Misc. 292 (1938)
Relevant factsFree
Levy (defendant) leased commercial space from Goldberg (plaintiff) for a clothing store, paying base rent plus a percentage of profits, with a clause letting Levy cancel the lease if gross sales fell below a specified threshold. Levy invoked that clause to terminate and stop paying rent, but Goldberg sued, alleging Levy had negligently or deliberately mismanaged the store specifically to drive sales below the cancellation threshold; Levy moved to dismiss for failure to state a claim.
IssueFree
Whether a party to a contract may purposely take actions that would trigger a cancellation right under the agreement's own terms.
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