Vermont Teddy Bear (NASDAQ:BEAR)
Historical Stock Chart
From Jun 2019 to Jun 2024
![Click Here for more Vermont Teddy Bear Charts. Click Here for more Vermont Teddy Bear Charts.](/p.php?pid=staticchart&s=N%5EBEAR&p=8&t=15)
New York Court of Appeals Returns Vermont Teddy Bear Co. Lease Dispute To Trial
Court
SHELBURNE, Vt., March 26 /PRNewswire-FirstCall/ -- The Vermont Teddy Bear
Company(R) today reported that the New York Court of Appeals reversed a
judgment of the lower court in the Company's favor in a lawsuit involving a
lease of retail space in New York City. The decision of the Court of Appeals
returns the case to the trial court for a determination as to whether the lease
was terminated after an incident inwhich the premises leased by the Company
were rendered uninhabitable when the wall of the adjoining building collapsed.
On October 24, 1996, the Company entered into a ten-year lease for a retail
store on Madison Avenue in New York City. On December 7, 1997, the Company's
538 Madison Avenue location was closed due to the structural problems at
adjoining 540 Madison Avenue. The Company later announced that it was
permanently closing that retail location. Pursuant to the lease, in the event
of sucha casualty, the lease would terminate if the leased premises were not
restored within one year. The City of New York deemed the 538 Madison Avenue
building uninhabitable from December 8, 1997 to April 9, 1998, and the Company
has not made any rent payments on the lease since December, 1997.
On December 24, 1998, the Company received a notice from the landlord alleging
that the Company was in default under the lease for failure to resume occupancy
and demanding back rent. The landlord had never previously advised the Company
of the restoration of the leased premises nor evidenced such restoration,
previously or at that or any subsequent point. On January 4, 1999 the Company
received a demand to resume rent payments beginning January 1999. The Company
disputed the landlord's position and believed it was not obligated to resume
occupancy or pay rent under the lease.
As a result, on May 25, 1999, the Company commenced action in the New York
Supreme Court against the landlord, 538 Madison Realty Company. The Company
sought breach of contract damages and a declaration that the lease had been
terminated. The landlord moved to dismiss the action based on purported
documentary evidence, which motion was denied. The Company moved for summary
judgment on its claims and dismissal of the landlord's claims.
The Company's motion for summary judgment was granted by order dated July 25,
2001 and judgment was entered in favor of the Company and against the landlord
in the amount of $211,146 on August 10, 2001. The landlord appealed that
judgment and posted a bond to stay enforcement of the judgment pending its
appeal. The judgment was affirmed by New York's Appellate Division, First
Department, and the landlord appealed to the New York Court ofAppeals. On
March 25, 2004, the Court of Appeals issued a decision reversing the Appellate
Division, and denying the Company's motion for summary judgment.
The decision by the Court of Appeals returns the case to the Supreme Court for a
determinationas to whether the Company's lease was terminated or continued in
effect following the December 7, 1997 incident. The Company will continue to
pursue all of its legal remedies to resolve the litigation favorably by decision
or settlement. According to Liz Robert, the Company's President and CEO, "We
continue to believe that the lease was terminated according to its terms. We
are disappointed that a trial may be necessary, but we are ready to make our
case."
At this time no trial date has been set.
The foregoing can be interpreted as including forward-looking statements under
the Private Securities Litigation Reform Act of 1995. Actual future results may
differ materially from those suggested by the statements above.
Contact:
Nicole L'Huillier
802-985-1362
DATASOURCE: The Vermont Teddy Bear Company
CONTACT: Nicole L'Huillier of The Vermont Teddy Bear Company, +1-802-985-
1362,
Web site: http://www.vermontteddybear.com/