J.N.A. Realty Corp. v. Cross Bay Chelsea

In J.N.A. Realty Corp. v. Cross Bay Chelsea (42 NY2d 392 [1977]) the tenant had notified the landlord of its desire to renew the lease, but the notice was sent five months after the option to renew had expired. The tenant asked for equity to relieve it from a forfeiture of the tenancy. Following a trial, the Civil Court held that the tenant was entitled to relief, and the Appellate Term affirmed the decision. The Appellate Division reversed, granting the landlord's petition to recover possession. The Court of Appeals reversed the Appellate Division and ordered a new trial, reasoning that the tenant made a considerable investment in improvements in the premises, and would lose considerable good will if the location were lost. By contrast, it was unclear from the record whether the landlord would be prejudiced if the tenant were relieved of its default.