Mutual Life Insurance Co. of New York v. Tailored Woman

Mutual Life (Mutual) (plaintiff) leased Tailored Woman (defendant) lower floors under a lease requiring a percentage of profits and barring diversion of sales, and separately leased it a fifth floor under a second lease requiring only flat rent and allowing sale of any women's merchandise there without restriction. Tailored Woman later moved its fur sales — previously conducted on the lower floors — up to the fifth floor without notifying Mutual, and stopped paying the lower-floor percentage on those fur sales; Mutual sued for the unpaid percentage.