United States Of America v. Epstein,
27 F. Supp.2d 404 (1998)
Nature of the Case
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Facts
The United States came into property and then decided to lease it to Epstein. Epstein sublet the building to Fisher in 1996 purportedly without government consent. Fisher in turn sublet to several other tenants. In 1996, the Government terminated Epstein's lease and brought an ejectment action. The issue on motion was whether the Government was under a duty of good faith and fair dealing and whether it breached that duty in refusing the sublets. New York law allowed arbitrary refusal unless the lease contained a specific clause to the contrary. Federal law did not allow such a decision.
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