March 30, 2015

The Supreme Court, Suffolk County has dismissed a tenant’s action to enforce a right of first refusal in North Bay Management, Inc. v. Sylport 47, Index No. 14/70613.   The tenant had purported to exercise the right of first refusal, but the landlord argued that it had never accepted a competing offer to buy the property, so the right could not be invoked.  The court agreed with the landlord and explained that a “Right of First Refusal does not give its holder the power to compel and unwilling owner to sell, rather it requires the owner, when it decides to sell, to offer the property first to the party holding the pre-emptive right so that it may be bought at the same terms as the third-party offer.”  The court therefore dismissed the tenant’s action and ordered the notice of pendency to be canceled.