Case Law Summaries

Golato v. Naperstek

• Opinion Date: June 6, 2002
• Real Property Law
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LEASES— A court cannot change the terms of a lease provision without clear evidence that the parties actually reached an agreement to make such a change.

A tenant had an option to purchase the leased premises. The option had two alternate provisions that the tenant could exercise to purchase the property, both of which required the landlord to take back a mortgage. The tenant attempted to exercise one of the option provisions and the landlord refused to sell the property. The tenant then filed a complaint seeking specific performance. During the course of the trial, the landlord and tenant attempted to negotiate a settlement and the trial was adjourned to allow the parties time to reach an amicable resolution. When the trial resumed, the landlord’s attorney made a motion to enforce the terms of a settlement agreement that was discussed in the trial judge’s chambers months earlier. The tenant’s attorney denied that an agreement was reached and claimed that the parties were merely negotiating possible settlement terms. The lower court found that the parties had reached a settlement altering the financing option by permitting the use of third-party financing to purchase the property. The Appellate Division reversed. The Court found that the lower court changed the terms of the contract without clear evidence of an agreement by the parties. A settlement may be proven even without a written agreement or other recorded evidence of its terms. However, in this case there was no evidence that the landlord and tenant reached an agreement, only that they were negotiating a possible resolution. The Court also noted that a motion to enforce a settlement is similar to a summary judgment motion in that the moving party must file written notice and an affidavit or certification supporting its position. The tenant’s attorney did not receive any notice prior to the resumption of the trial that the landlord intended to enforce a settlement.

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