Handler v. Horns
Supreme Court of New Jersey
65 A.2d 523 (1949)
Fred Horns leased a commercial building from his parents and spent $89,000 installing refrigeration equipment and cold storage. After his parents' deaths and a new lease with his siblings (which restricted removing fixtures that would damage the premises), Fred continued the business until his death, leaving it and his fixture rights to his son Henry Horns (defendant). Hazel Handler (plaintiff), Henry's cousin and a one-third owner of the building, sued for partition and sale, arguing the installed equipment had become part of the real estate and could not be removed by Henry. The trial court agreed and ordered the improvements included in the sale; the appellate court affirmed. Henry appealed.
Whether, under New Jersey law, a commercial tenant is entitled to remove trade fixtures from leased property so long as the fixtures can be removed without material damage to the premises and are removed before the tenant vacates.