Symphony Space, Inc. v. Pergola Properties, Inc

In Symphony Space, Inc. v. Pergola Properties, Inc. (88 NY2d 466, 669 N.E.2d 799, 646 NYS2d 641 [1996]), an agreement between two corporations gave one of the corporations a repurchase option that could be exercised more than 21 years after the agreement was consummated. After concluding that EPTL 9-1.1(b) applied to commercial options, the Court acknowledged that an option to purchase that "originates in one of the lease provisions, is not exercisable after lease expiration, and is incapable of separation from the lease, known as options "appendant" or "appurtenant" to leases, "is valid even though the holder's interest may vest beyond the perpetuities period" and is not contemplated by EPTL 9-1.1(b). However, the purchase option at issue did not fall within this exempted category of options appurtenant to leases. The option "was not contained in the lease itself, but in a separate agreement," in that the option was in no way "affected or impaired by...performance or nonperformance, actual or asserted, of any obligation to be performed under the Lease or any other agreement." Also, the duration of the option exceeded the term of the lease, in that "defendants could compel" the sale of the property "even after they have ceased possession as lessee." The court also refused to adopt the "wait-and-see" approach proposed by the defendant, stating that under EPTL 9-1.1(b), an interest is "void from the outset if it may vest too remotely"