City of New York v Heritage Health & Hous., Inc.

Holding The court affirmed the denial of motions to dismiss, determining that the agreements at issue were licenses rather than leases because they contained broad termination rights and prohibited assignment. Consequently, the defendants were not entitled to the notice requirements applicable to terminating a tenancy.

The court’s words

What defines the proprietary relationship between the parties is not its characterization or the technical language used in the instrument, but rather the manifest intention of the parties

2026 NY Slip Op 05998, at the official text

a broad termination clause reserving to the grantor the right to cancel whenever it decides in good faith to do so is strongly indicative of a license as opposed to a lease

2026 NY Slip Op 05998, at the official text

municipal contracts which violate express statutory provisions are invalid

2026 NY Slip Op 05998, at the official text

a receptionist may accept service on behalf of a party if granted authority to do so

2026 NY Slip Op 05998, at the official text