Healthcorps., Inc. v. Urban FT, Inc.
2025 NY Slip Op 31907(U)
N.Y. Sup. Ct., New York Cty.2025Background
- Healthcorps, Inc. (Plaintiff) subleased office space to Urban FT, Inc. (Defendant) with a commercial sublease set to expire in 2021.
- Urban's CEO, Richard Steggall, signed a "Good Guy Guarantee" linked to the sublease.
- Urban failed to pay rent from 2017 into early 2018; Healthcorps issued a termination notice in January 2018 and demanded Urban vacate.
- The parties later entered a Stipulation of Settlement in April 2018, allowing Urban to remain and pay arrears.
- Urban vacated the premises in October 2018 without paying rent for October or subsequent months; Healthcorps could not find a new tenant and reoccupied the premises in January 2019.
- Both parties moved for summary judgment on their respective claims.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the January 2018 termination notice ended the sublease | Sublease was not truly terminated due to later agreements | Sublease was terminated, creating only a month-to-month tenancy | Termination notice effectively ended the sublease in Jan 2018 |
| Effect of the Stipulation of Settlement | Reactivated the sublease, binding parties under its terms | Only set rent for a month-to-month tenancy | Stipulation expressly revived sublease obligations as of April 2018 |
| Continued liability under the Good Guy Guarantee | Guarantee revived with sublease via settlement | Guarantee and obligations ended with Jan 2018 termination | Guaranty terminated in Jan 2018 and was not revived by settlement |
| Duplicative claims (conversion, declaratory j.) | Alternative remedies for the rent/furniture disputes | Claims are duplicative of breach of contract claims | Duplicative (3rd/4th) claims dismissed |
Key Cases Cited
- Triggs v. Triggs, 61 A.D.2d 911 (1st Dept. 1978) (parties to a cancelled contract may expressly and specifically agree to revive its terms)
- Apple Records, Inc. v. Capitol Records, Inc., 137 A.D.2d 50 (1st Dept. 1988) (declaratory relief is duplicative when breach of contract claim is available)
- Stonehill Cap. Mgmt. LLC v. Bank of the W., 28 N.Y.3d 439 (2016) (standard for summary judgment under New York law)