Schwartz, Karlan & Gutstein v. 271 Venture

In Schwartz, Karlan & Gutstein v. 271 Venture (172 AD2d 226 [1st Dept 1991]) at issue was Section 9 of the standard form lease, which provided that in the event of fire damage, "'this lease shall continue in full force and effect' "except that the landlord shall repair the damage at its own expense and the tenant shall be entitled to a reduction in rent proportionate to the usability of the premises; and, in case of total unusability, the landlord, at its sole option, may elect not to restore the premises and to terminate the lease." The Court then noted that the "tenant was not only not afforded a corresponding right to terminate, it expressly waive[d] that option, otherwise available under Real Property Law 227, and agreed that the afore-cited provisions of section 9 of the lease 'shall govern and control in lieu thereof.'"