Beach Resort Hotel Corporation v. Bernard R. Wieder

This case involves a lease. Plaintiffs below were Wieder and Amigo, owners of 50% of the stock of Palwi, Inc., the lessee corporation. Defendants included Yetta Rosen, owner of the balance of the stock in the, lessee corporation, Abraham Rosen, who is her father, Beach Resort Hotel Corporation, the lessor (wholly owned by Abraham Rosen), and Palwi, Inc., lessee. The bill of complaint, filed in equity, alleged that on August 28, 1951, Beach Resort Hotel Corporation leased to Palwi, Inc., the Surfside Plaza Hotel, with furnishings, for the term of five years, with an option to renew for an additional five years. The rental was $100,000 per year, and the lessee was to advance security in the sum of $100,000. The lessee was obligated, under the lease, to make certain specified improvements, to cost not in excess of $200,000, and to be paid for by the lessee $90,000 in cash and the balance from profits of the hotel as and when made. This provision of the lease reads as follows: