Lease Termination Validity After Discontinued Criminal Proceedings

The court addressed an appeal concerning the validity of an extraordinary termination of two lease agreements for a restaurant and associated rooms, initially based on allegations of criminal acts by the lessee's representative. The initial termination cited criminal acts against the lessor, which the lessor later substantiated by referencing an ongoing criminal complaint regarding property offenses related to building renovations; however, that criminal case was ultimately discontinued. The court reasoned that under applicable law, the grounds for an extraordinary termination must exist at the time the notice is given, and while the lessor initially specified criminal acts forming the basis of the now-discontinued prosecution, the lessor attempted to introduce entirely new grounds (alleged malicious persecution and defamation) that occurred after the termination date, which constituted an impermissible post-hoc supplementation of the termination reasons, leading to the dismissal of the appeal and affirming the lower court's finding that the leases remained in effect.