A New York appellate court has ruled on a dispute involving Broadway Warehouse Co. and Buffalo Barn Board, LLC, concerning attorney fees related to a commercial lease. The court's decision, issued on June 5, 2026, affirms a lower court's reduction of the fees awarded to Broadway Warehouse, which had sought nearly half a million dollars in legal costs.
The case, identified by docket number 208 CA 25-00676, centers on Broadway Warehouse's claim for damages stemming from unpaid rent under a lease agreement with Buffalo Barn Board. This ruling is significant as it clarifies the extent to which a party can recover attorney fees in similar contractual disputes.
Background
Broadway Warehouse Co. initiated the lawsuit against Buffalo Barn Board, LLC, seeking compensation for attorney fees incurred while pursuing a judgment for unpaid rent. The dispute dates back to a prior action where Broadway Warehouse successfully secured a judgment against Buffalo Barn for unpaid rent. However, Broadway Warehouse's claim expanded to include attorney fees, alleging breach of contract and fraudulent transfer of assets.
Initially, Broadway Warehouse sought a total of $480,146.08, which included $293,067.82 in attorney fees and $187,078.26 in prejudgment interest. The Supreme Court of Erie County appointed a referee to evaluate the attorney fees, which led to a report recommending an award of $135,009.89. However, the court ultimately reduced the awarded fees to $88,487.58, covering legal work from the start of the initial action in 2010 until December 5, 2017, when Buffalo Barn's principal satisfied the judgment.
The Ruling
The Appellate Division of the Supreme Court upheld the lower court's decision, affirming the reduced attorney fees. The ruling emphasized that while Broadway Warehouse was entitled to attorney fees for the initial judgment, it could not claim fees for subsequent efforts to collect those fees. The court stated, "plaintiff is not entitled to 'fees on fees.'"
The judges involved in the decision included Lindley, Bannister, Greenwood, Nowak, and Hannah. The court noted that an award of 'fees on fees' is only permissible if a specific contractual provision or statute allows it. In this case, the standard lease agreement did not provide for the recovery of attorney fees incurred while attempting to collect attorney fees.
Impact
This ruling has important implications for the interpretation of attorney fee provisions in commercial leases. It clarifies that parties may not assume they can recover fees incurred in the pursuit of previously awarded fees unless explicitly stated in the contract. This decision may influence how future lease agreements are drafted, particularly concerning attorney fees and the conditions under which they can be claimed.
Additionally, the court's ruling reinforces the principle that a clear intention must be present in contractual language to recover attorney fees. This could lead to more precise language in contracts to avoid similar disputes in the future.
What's Next
Broadway Warehouse has the option to appeal the decision, but details regarding any potential appeal were not provided in the court filing. There are no related cases pending that were mentioned in the opinion.