Justice Elizabeth Emerson
Apex Industries leased space and fell behind on rent, but entered into stipulations of settlement with landlord. It agreed to provide landlord with the keys by Oct. 31, 2011, and landlord entered into a three year lease with Precision CNC. Plaintiffs alleged Precision took over Apex’s business, including its lease, contracts and equipment, seeking to recover damages for breach of contract, among other things. Plaintiffs alleged defendants, acting in concert, took advantage of Apex’s eviction, claiming defendants stated they would take over Apex’s lease, but permit Apex to continue to do its business on the premises in a “lease-takeover.” Plaintiffs argued once the lease was renegotiated, defendants reneged, and took over the business. The court found the lease-takeover agreement was unenforceable under the statute of frauds as a contract for an interest in real property for more than one year. It noted defendants entered into a lease with the landlord for three years, thus the alleged oral agreement between plaintiffs and defendants to take over the lease was unenforceable. Therefore, the court dismissed the first cause of action for breach of contract against defendants Precision and Napolitano, its sole officer and shareholder.
