Tenant Evicted for Not Getting City Approval of Fire System

A tenant installed a fire suppression system in the kitchen of its space in 1994. In 2005, the owner asked the tenant to prove that it had gotten the New York City Department of Buildings' (DOB) final approval for the system. The tenant never gave the owner proof, so the owner terminated the lease. After the tenant refused to move out, the owner asked a court to evict the tenant. The tenant argued that the lease required a committee of architects—not a court—to hear the case.

A New York court ordered the tenant to move out of the space. The court noted that the lease required all construction at the space to be performed in compliance with all applicable laws and codes. That meant the DOB's final approval for the system was required. The tenant never got the DOB's approval, even though it had 11 years in which to do so. As a result, the tenant had “violated a substantial obligation of its tenancy,” said the court. Also, the lease referred “disputes” between the parties to a committee of architects. But that clause didn't apply here, said the court, because “compliance with the Building Code is non-negotiable” [Bay Plaza Community Center, LLC v. Champion Chicken of Bay Plaza, Inc.].