Kel Kim Corp. v. Central Markets, Inc.

524 N.Y.S.2d 384 (1987)

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Nature of the Case

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Facts

Central Markets, Inc. (D) leased an old supermarket to Kim Corp. (P) to be used as a skating rink. The lease specified that P was to carry liability insurance for $1 million. The term of the lease was for 10 years with two five-year renewal options. The lease carried a standard force majeure clause. P carried the insurance for the first six years until the insurer notified P that it would not renew. P obtained insurance for $500,000 due to a liability insurance crisis. D demanded compliance or forfeiture. P filed a declaratory relief action; the force majeure clause excused its obligation to maintain insurance. The trial court granted summary judgment to D, dismissed the action, and voided the lease. The Appellate Division affirmed. P appealed.