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STORWAL INTERN. v. THOM ROCK REALTY CO.

July 8, 1991

STORWAL INTERNATIONAL, INC., PLAINTIFF,
v.
THOM ROCK REALTY COMPANY, L.P., DEFENDANT.



The opinion of the court was delivered by: Sweet, District Judge.

OPINION

Defendant Thom Rock Realty Company ("Thom Rock") has moved pursuant to Rule 56, Fed.R.Civ.P., for summary judgment dismissing the complaint of plaintiff Storwal International, Inc. ("Storwal") in this diversity action for damages arising from an alleged breach of contract. For the reasons set forth below, the motion is denied.

The Parties

Storwal is a Canadian corporation engaged in the manufacture and wholesale of steel file cabinetry and pedestals for professional commercial offices (the "office furniture business"). Its principal place of business is in Pembroke, Ontario, Canada.

Thom Rock is a New York limited partnership having its principal place of business in New York, New York. Thom Rock develops and owns real estate.

Prior Proceedings

On October 26, 1990, Storwal filed this action seeking a declaration that Thom Rock breached the lease between the parties and damages for breach of contract.

Thom Rock did not answer the first amended complaint. On January 21, 1991, Thom Rock filed the instant summary judgment motion. Oral argument was heard on March 26, 1991, and the motion was considered fully submitted as of that date.

The Facts

By Agreement of Lease, dated April 23, 1986 (the "Lease"), Storwal and Thom Rock entered into a lease for the rental of premises (the "Premises") at 30-30 Thomson place, Long Island City, New York (the "Building").

The term of the lease was for a ten-year period, commencing on May 1, 1986 and expiring on April 30, 1986.

Paragraphs 2(A), 2(B), 20 and 46(C) of the Lease provide as follows:

  2(A) — Tenant shall use and occupy the Premises for
  the showroom display and sale to the trade, at
  wholesale only, of the following items and for no
  other use or purpose: Furniture Systems.
  2(B) — Landlord covenants that the Project shall be
  constructed as a first class commercial building
  intended to be used for ...

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