• NY Apartment Law
  • Fair & Affordable Housing
  • Commercial Lease Law
  • Guidebooks
  • Archives
  • Main Articles
  • Model Lease Clauses
  • Q&A
  • Dos & Don'ts
  • Recent Court Rulings
  • eAlerts
  • Log In
  • Log Out
  • My Account
  • Subscribe
  • NY Apartment Law
  • New York Apartment Law Insider
  • New York Landlord V. Tenant
  • Co-Op & Condo Case Law Digest
  • New York Rent Regulation Checklist, Fourth Edition
  • 2025 New York City Apartment Management Checklist
  • Fair & Affordable Housing
  • Fair Housing Coach
  • Assisted Housing Management Insider
  • Tax Credit Housing Management Insider
  • Fair Housing Boot Camp. Basic Training For New Hires
  • Commercial Lease Law
  • Commercial Lease Law Insider
  • Best Commercial Lease Clauses, 17/e
  • Best Commercial Lease Clauses: Tenant's Edition
  • Best Commercial Lease Clauses, 17/e
  • Best Commercial Lease Clauses, 17/e
  • Main Articles
  • Features
  • Broker's Buzz
  • Drafting Tips
  • In the News
  • Negotiating Tips
  • Plugging Loopholes
  • Traps to Avoid
  • Model Lease Clauses
  • Model Lease Clauses
  • Model Agreements
  • Other Model Tools
  • Q&A
  • Q&A
  • Pop Quiz
  • Winners & Losers
  • Ask the Insider
  • Recent Court Rulings
  • Landlord Wins
  • Landlord Loses
July 17, 2025
We use cookies to provide you with a better experience. By continuing to browse the site you are agreeing to our use of cookies in accordance with our Cookie Policy.
The Habitat Group Logo
  • NY Apartment Law
    • New York Apartment Law Insider
    • New York Landlord V. Tenant
    • Co-Op & Condo Case Law Digest
    • New York Rent Regulation Checklist, Fourth Edition
    • 2025 New York City Apartment Management Checklist
  • Fair & Affordable Housing
    • Fair Housing Coach
    • Assisted Housing Management Insider
    • Tax Credit Housing Management Insider
    • Fair Housing Boot Camp. Basic Training For New Hires
  • Commercial Lease Law
    • Commercial Lease Law Insider
    • Best Commercial Lease Clauses, 17/e
      • Best Commercial Lease Clauses, 17/e
    • Best Commercial Lease Clauses: Tenant's Edition
  • Guidebooks
  • July 17, 2025
  • Log In
  • Log Out
  • My Account
  • Subscribe
  • July 17, 2025
CLLI_logo_2020.jpg
  • Archives
  • Main Articles
    • Features
    • Broker's Buzz
    • Drafting Tips
    • In the News
    • Negotiating Tips
    • Plugging Loopholes
    • Traps to Avoid
  • Model Lease Clauses
    • Model Lease Clauses
    • Model Agreements
    • Other Model Tools
  • Q&A
    • Q&A
    • Pop Quiz
    • Winners & Losers
    • Ask the Insider
  • Dos & Don'ts
  • Recent Court Rulings
    • Landlord Wins
    • Landlord Loses
  • eAlerts
Free Issue
The Habitat Group Logo
July 17, 2025
  • Log In
  • Log Out
  • My Account
Home » Owner Can't Sue for Future Rent Without Acceleration Clause

Owner Can't Sue for Future Rent Without Acceleration Clause

Mar 26, 2014

Facts: After a flood damaged its store in a strip mall, a sporting goods tenant announced that it would be closing its store and moving out. The tenant informed the owner that it was no longer able to get and maintain adequate insurance as required by the lease. The tenant was also concerned that the flooding would occur again, and claimed that the previous owner of the shopping center from whom the tenant first rented its space hadn’t disclosed that the location was in a flood-prone area. For several months after announcing it would close, the tenant paid rent but didn’t operate in its space. Eventually, it stopped paying rent. The owner sued the tenant for anticipatory breach of its lease, among other claims. It asserted that it was entitled to all future rent payments. The tenant asked the district court to dismiss the claim.

Decision: A New York district court dismissed the claim for anticipatory breach of the lease.

Reasoning: The district court pointed out that New York law states that absent an acceleration clause in a lease, the breach of a lease doesn’t entitle an owner to make a claim for all future rents under the lease. The court noted that, here, it is undisputed that the lease doesn’t contain a rent acceleration clause. In fact, the lease specifically prohibits acceleration of rents. It says: “Notwithstanding anything to the contrary contained in this Lease, Landlord shall not have any right to accelerate Base Rent, Percentage Rent, or Additional Rent hereunder.”

The owner argued that despite the absence of an acceleration clause, it is nevertheless entitled to "damages" in the form of future rents and diminution in value of the premises, because the tenant committed an “anticipatory breach.” That is, since the tenant has informed the owner that it will no longer fulfill its obligations under the lease, including the payment of rent, the owner is entitled to damages for total breach.

But the court disagreed with the owner. It noted that, under the doctrine of anticipatory breach, if one party to a contract repudiates his duties thereunder prior to the time designated for performance and before he has received all of the consideration due him under the contract, such repudiation entitles the other party to claim damages for total breach. However, the doctrine of anticipatory breach hasn’t generally been applied to all types of contracts, said the court. And it didn’t apply to this lease. There’s a "general principle accepted in New York that, absent an acceleration clause, an aggrieved party to a contract for the payment of money in fixed installments may not, as a general matter, obtain acceleration by a claim of anticipatory breach," concluded the court.

Thus, where, as here "there is no acceleration clause in the lease entitling the owner to future rents upon a breach thereof, the owner’s right to future rent has not yet ripened and recovery may only be had for past due rent," the court stated.

  • U-Slip LLC v. Gander Mt. Co., February 2014
Owner Loses
    • Related Articles

      Rent Acceleration Clause Is an Unenforceable Penalty

      Landlord Can’t Sue Wal-Mart for Backing Out of Lease Negotiations

      Tenant Can Sue Owner for Fraudulent Inducement

    • Publications
      • Assisted Housing Management Insider
      • Commercial Lease Law Insider
      • Co-op & Condo Case Law Tracker Digest
      • Fair Housing Coach
      • New York Apartment Law Insider
      • New York Landlord v. Tenant
      • Tax Credit Housing Management Insider
    • Additional Links
      • Contact Us
      • Advertise
      • Group Subscriptions
      • Privacy Policy
      • Terms of Use
    • Boards of Advisors
      • Assisted Housing Management Insider
      • Commercial Lease Law Insider
      • Fair Housing Coach
      • New York Apartment Law Insider
      • Tax Credit Housing Management Insider
    ©2025. All Rights Reserved. Content: The Habitat Group. CMS, Hosting & Web Development: ePublishing
    The Habitat Group Logo
    • NY Apartment Law
      • New York Apartment Law Insider
      • New York Landlord V. Tenant
      • Co-Op & Condo Case Law Digest
      • New York Rent Regulation Checklist, Fourth Edition
      • 2025 New York City Apartment Management Checklist
    • Fair & Affordable Housing
      • Fair Housing Coach
      • Assisted Housing Management Insider
      • Tax Credit Housing Management Insider
      • Fair Housing Boot Camp. Basic Training For New Hires
    • Commercial Lease Law
      • Commercial Lease Law Insider
      • Best Commercial Lease Clauses, 17/e
        • Best Commercial Lease Clauses, 17/e
      • Best Commercial Lease Clauses: Tenant's Edition
    • Guidebooks
    • July 17, 2025
    • Log In
    • Log Out
    • My Account
    • Subscribe
    • July 17, 2025
    CLLI_logo_2020.jpg
    • Archives
    • Main Articles
      • Features
      • Broker's Buzz
      • Drafting Tips
      • In the News
      • Negotiating Tips
      • Plugging Loopholes
      • Traps to Avoid
    • Model Lease Clauses
      • Model Lease Clauses
      • Model Agreements
      • Other Model Tools
    • Q&A
      • Q&A
      • Pop Quiz
      • Winners & Losers
      • Ask the Insider
    • Dos & Don'ts
    • Recent Court Rulings
      • Landlord Wins
      • Landlord Loses
    • eAlerts
    Free Issue
    The Habitat Group Logo
    July 17, 2025
    • Log In
    • Log Out
    • My Account