Matter of U.L. Radio Corp.
United States Bankruptcy Court for the Southern District of New York
19 B.R. 537 (1982)
U.L. Radio (debtor) held a 10-year lease from Jemrock Realty (defendant) restricting the space to television and appliance sales and barring noise that would breach the lease, with assignment permitted subject to Jemrock's consent, not to be unreasonably withheld. After filing Chapter 11 to liquidate, U.L. Radio sought to assign the lease to Just Heaven Restaurant, whose president personally guaranteed two years of rent and who set aside $20,000 for construction including soundproofing; Jemrock opposed the assignment given the change of use from electronics retail to restaurant.
Whether a proposed assignee's violation of a use clause in the lease to be assigned justifies the landlord's refusal to permit assignment where the violation will not cause substantial harm to the landlord.