## Facts

- In 1984, Linro Equipment Corporation and Westage Tower Associates executed a written “Laundry Room Lease Agreement” for a 12-story building.
- Linro agreed to install, maintain, and service coin-operated laundry machines on each of the building’s 12 floors at Linro’s expense.
- Linro collected machine revenue and paid the building owner a percentage.
- The agreement had a seven-year term (1984–1991) with options for two additional seven-year renewals.
- In 1985, the building was converted to condominium ownership; Westage remained sponsor/developer while units were sold.
- In 1987, Linro exercised a renewal option extending the arrangement through 2001.
- In 1994, the condominium’s managing agents informed Linro the agreement was terminated and demanded removal of Linro’s machines.
- Linro sued for declaratory and injunctive relief, asserting the agreement created a leasehold interest that could not be unilaterally terminated before expiration.

## Issues

1. Whether the laundry-room agreement created a leasehold interest (a possessory interest for a definite term) or a revocable license to place equipment.
2. Whether condominium conversion and unit sales terminated or altered Linro’s rights under the agreement.
3. Whether Linro satisfied the requirements for a preliminary injunction to prevent interference with its continued operation pending final adjudication.

## Decision

- The Appellate Division affirmed the order granting a preliminary injunction.
- The court held the agreement was properly characterized as a lease rather than a license.
- The court concluded the condominium conversion did not, by itself, extinguish Linro’s leasehold rights absent contractual authority.
- The court found no abuse of discretion in preserving the status quo through injunctive relief while the merits were litigated.

## Legal Principles

- An agreement granting exclusive rights to occupy and use defined portions of real property for a definite, extended term—especially with renewal options—may constitute a lease even if tied to operation of equipment or services.
- A license is generally a revocable privilege without a possessory interest; a lease conveys possessory rights that are not freely terminable before the end of the term absent breach or other legal basis.
- Conversion of a building to condominium ownership does not automatically terminate existing leasehold interests without contractual or statutory authority.
- A preliminary injunction may issue where the movant shows likelihood of success on the merits, irreparable harm absent relief, and equities favoring maintenance of the status quo.

## Conclusion

The court treated the laundry-room agreement as a lease conferring a continuing possessory interest through the renewed term, rejected condominium conversion as a basis for unilateral termination, and upheld a preliminary injunction preventing interference with Linro’s continued operation pending resolution on the merits.


Linro Equip. Corp. v. Westage Tower Assocs., 233 A.D.2d 824, 650 N.Y.S.2d 399 (N.Y. App. Div. 3d Dep’t 1996)