Question: Sun operates an upscale sandwich shop in New Jersey, in a storefront that she leases...
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Question: Sun operates an upscale sandwich shop in New Jersey, in a storefront that she leases from Ricky for $18,000 per month. The lease, which expires soon, allows Sun to renew for five years, at $22,000. Ricky knows, but Sun does not, that Prada will open a store on the same block, in a year. The dramatic increase in pedestrian traffic will render Sun's space more valuable. Ricky says nothing about Prada, Sun declines to renew, and Ricky leases the space for $40,000. Sun sues Ricky, claiming he breached his duty of good faith and fair dealing. Based on the Brunswick Hills case, how would the New Jersey Supreme Court rule? Strategy: In the Brunswick Hills case, the court, on the one hand, criticized the defendant for cynically evading the plaintiff's efforts to renew. However, the court also said, "We do not expect a landlord or even an attorney to act as his brother's keeper in a commercial transaction." Using those opposing themes as guidelines, examine the court's decision and predict the ruling in Sun's suit. Result: Brunswick Hills begins: "Courts generally should not tinker with a finely drawn and precise contract entered into by experienced business people." Sun's lease imposes no responsibility on Ricky to report on neighborhood changes or forecast profitability. Further, Sun made no requests to Ricky about the area's future. Sun is asking Ricky to be "her brother's keeper," and neither this court nor any other will do that. She loses.
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