Justice Francesca Connolly
This case involved a commercial tenant’s attempt to exercise an option in its lease to purchase the subject property. In 2008, tenant Armonk Snack Mart, sued defendant landlord, Robert Porpora Realty Corp., to compel specific performance of the option to sell. Suit was settled after the parties entered into a letter agreement whereby the landlord agreed to sell the property for $1.6 million. The letter agreement was signed by the attorney for the landlord. The parties never closed, and the landlord later found another buyer who was willing to pay $3 million for the property. Tenant sued in 2012 to compel specific performance of the letter agreement. In the instant action, the landlord claimed that he never gave his attorney authorization to settle the prior litigation. The court held that the attorney had apparent authority to enter into the letter agreement, thereby binding his client. The court discussed CPLR §2104 requirements for out-of-court stipulations of settlement. Although the letter agreement constituted a valid contract to sell the subject real property, the court found that there are issues of fact as to whether the tenant was ready, willing, and able to perform, such that it would be entitled to specific performance.
