KEL KIM CORP. v. CENTRAL MARKETS, INC. 524 N.Y.S.2d 384 (1987) CASE BRIEF

KEL KIM CORP. V. CENTRAL MARKETS, INC.
524 N.Y.S.2d 384 (1987)
NATURE OF THE CASE: This was an appeal from a summary judgment. Kel Kim (P), lessee and individual guarantors, sought review of an order affirming an order that granted Central (D), lessors', motion for summary judgment declaring that a lease between was nullified, and directed P to vacate the premises.
FACTS: Central Markets, Inc. (D) leased an old supermarket to Kim Corp. (P) to be used as a skating rink. The lease specified that P was to carry liability insurance for $1 million. The term of the lease was for 10 years with two five-year renewal options. The lease carried a standard force majeure clause. P carried the insurance for the first six years until the insurer notified P that it would not renew. P obtained insurance for $500,000 due to a liability insurance crisis. D demanded compliance or forfeiture. P filed a declaratory relief action; the force majeure clause excused its obligation to maintain insurance. The trial court granted summary judgment to D, dismissed the action, and voided the lease. The Appellate division affirmed. P appealed.

ISSUE:


RULE OF LAW:


HOLDING AND DECISION:


LEGAL ANALYSIS:





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