among other things, Tenant's failure to indemnify Landlord in the federal action in breach of
paragraphs 6, 8, and 19 of the lease, Tenant's failure to pay real estate taxes, and Landlord's right
to costs and attorneys' fees in this action. Landlord seeks a declaration from this court as to its
right to retain Tenant's security deposit. Landlord also moves for summary judgment dismissing
the first, second and third causes of action in the complaint. Tenant cross-moves for summary
judgment in its favor on its first and second causes of action, for summary judgment dismissing
all five of Landlord's counterclaims with prejudice, for discovery sanctions and for costs incurred
in this action. For the reasons stated below, Landlord's motion is granted in part and denied in
part. Tenant's cross motion is granted in part and denied in part.
I. Background
By lease dated June 1, 1996, Landlord leased "The South Store (ground floor and basement)"
at 80 Thompson Street (premises) to Le Corset, Inc. The lease was amended pursuant to a First
Amendment to the Lease dated June 26, 2004. By an Assignment and Assumption of Lease dated
December 7, 2006, and entered between Landlord, Tenant and Le Corset, Tenant assumed and
accepted the lease. Kee Ling signed a personal guaranty for the lease. On June 8, 2009, Landlord
and Tenant entered into a Second Amendment to the Lease. On May 30, 2012, Landlord and
Tenant entered into a Third Amendment to the Lease, which, among other things, extended the
lease term to June 30, 2017.
On March 3, 2017, while the Third Amendment to the Lease was still in effect, Graciela
Bretschneider Doncouse commenced a federal action against Landlord and Tenant, alleging,