Judge James d'Auguste
Adams & Co. Real Estate moved for summary judgment. Owner Pigranel Management cross-moved for summary judgment. A real estate broker affiliated with Adams introduced Pigranel to a perspective tenant. Pigranel entered into a brokerage agreement with Adams providing for an initial commission and a contingent commission, related to the tenant exercising an option in the underlying lease agreement. The option provided tenant could extend the term by giving notice to landlord and the option would be on all the terms and conditions, except the fixed rent. Tenant never exercised the option, but before the lease expired negotiated a lease extension with an eight percent rent decrease. The court noted the expiration of the option period was not fatal to Adams' claim for commission. Yet, the lease extension materially differed on rent, which was inconsistent with the unilateral right granted to the tenant to extend the lease subject to a specific rental amount. Thus, while the tenant did not exercise the option, the reduction in rent for the extended period was fatal to the broker's entitlement to a commission. As a condition precedent was not fulfilled, Adams' motion for summary judgment was denied, while Pigranel's cross-motion granted.
