Culver & Theisen v. Starr Realty Co

In Culver & Theisen v. Starr Realty Co. [NE], 307 AD2d 910, 763 NYS2d 84 [2003] the plaintiff brought an action seeking, among other things, to rescind a lease based on fraudulent inducement, unilateral mistake, mutual mistake, lack of consideration, and illegality, because the plaintiff was unable to obtain the permits necessary to use the premises for the purpose contemplated by the lease. The Appellate Division, Second Department, upheld dismissal of all of those causes of action because the lease gave the plaintiff a six-month period in which to cancel the agreement if the plaintiff was unable to obtain necessary permits to use the premises as intended, and the plaintiff failed to exercise that option (Culver, 307 AD2d at 910-911). As to the plaintiff's claim of mutual mistake, the court stated: "The plaintiff's second cause of action for rescission based upon mutual mistake was properly dismissed, since there was no mistake in the lease that the plaintiff would be able to obtain the requisite permit" (id.).