Commercial Landlord-Tenant—Provision on Eviction Held to Be "Unconscionable"—Purchaser Had Failed to Conduct Due Diligence by Reviewing Existing Lease
The current owner of a building (owner) commenced a commercial holdover proceeding against a tenant. The owner alleged that the tenant is a month-to-month tenant pursuant to an oral tenancy. The owner had terminated the tenancy on Oct. 31, 2011 by a notice dated Sept. 16, 2011. The tenant countered that "it is not a month to month tenant" and that "it has a valid lease dated February 26, 2010 ['lease'], entered into between…(prior owner) and…(tenant). The lease had a 10-year term, with two five-year options to renew through Feb. 28, 2030. The lease was executed by the prior owner and his brother, the president and owner of the tenant. The owner attacked the validity of the lease on several grounds including paragraph 14, which stated in full:
