1552 Broadway Retail Owner LLC v. McDonald's Corp.
The case concerns a dispute between 1552 Broadway Retail Owner LLC (Landlord) and McDonald's Corporation (Tenant) regarding the fair market value (FMV) rent under a commercial lease. The core issue involved the interpretation of the "highest and best use of the demised premises" clause, which was initially ruled upon by the court in Landlord's favor before arbitration. Subsequently, Tenant allegedly committed misconduct during arbitration by relitigating this court-decided issue and submitting an expert opinion discrediting the court's ruling. Landlord moved to vacate the arbitration award, citing Tenant's misconduct. The court denied Landlord's motion and granted Tenant's cross-motion to confirm the award, determining that Landlord failed to prove by clear and convincing evidence that the alleged misconduct prejudiced the arbitrators' decision.