Otr Associates v. Ibc Services, Inc.

801 A.2d 407 (N.J. App. Div. 2002)

Purchase the Printed Copy at bsmsphd.com

Nature of the Case

To access this section all you need to do is click here and register.

Facts

P leased space in 1985 for use by a Blimpie franchisee, Samyrna, Inc., a corporation owned by Sam Iskander and his wife. D was the sole owner of a subsidiary named IBC Services, Inc. (IBC), created for the single purpose of holding the lease on premises occupied by a Blimpie franchisee. IBC that entered into the lease with P in July 1985 and, on the same day and apparently with P's consent, subleased the space to the franchisee. The tenancy was terminated by a dispossess judgment and warrant for removal in 1996. In 1998 P commenced this action for unpaid rent, then in the amount of close to $150,000, against D under both its present name and its former name, International Blimpie Corporation. It also joined as defendants the leasing subsidiary, IBC, as well as Garden State Blimpie, Inc., another wholly-owned leaseholding subsidiary of D to whom IBC had assigned the lease in 1991 without notice to the landlord in violation of the terms of the lease requiring such notice. Judgment was entered in favor of P against D as well as the two judgment-proof subsidiaries in the full amount of the rent arrearages plus interest thereon, then some $208,000. D appealed.