J.N.A. Realty Corp. v. Cross Bay Chelsea, Inc.

J.N.A. Realty Corp. (JNA) (plaintiff) leased commercial property to a restaurant with a renewal option requiring notice at least six months before lease-end; when Cross Bay Chelsea, Inc. (Chelsea) (defendant) purchased the lease, JNA agreed to extend the option period to 24 years, and Chelsea then occupied the space, made improvements, and purchased fixtures and chattels. JNA sent Chelsea periodic reminder letters about its lease obligations, including one just two weeks before the option deadline that never mentioned the option; only after the deadline passed did JNA tell Chelsea the option had expired, and when Chelsea then tried to give renewal notice, JNA refused to honor it, ultimately bringing a holdover action after the lease term ended.