VK Dental Group, Inc. v. Tender Touch Physical Therapy, PLLC (NY Appellate Division Revives $1M Sublease Rent Dispute)

New York's Appellate Division, Second Department reversed a $1,004,426.20 judgment on October 21, 2026 that sublessor VK Dental Group, Inc. had won against sublessee Tender Touch Physical Therapy, PLLC for unpaid rent under a commercial sublease. The panel held that the sublessee raised a triable issue of fact by submitting an affidavit alleging VK Dental itself breached the sublease, by failing to pay its share of utilities and by having the premises' gas service disconnected, and denied VK Dental's motion for summary judgment outright.

Why it matters

The ruling confirms that a commercial sublessor cannot treat a tenant's undisputed rent nonpayment as an automatic path to summary judgment: a plaintiff suing for breach of a lease or sublease must still establish its own performance, and a tenant's sworn allegation that the landlord fell short on an ancillary obligation, like splitting utility costs, can be enough to send a six-figure rent claim to trial. Commercial landlords and sublessors managing multi-tenant buildings should document their own compliance with every sublease obligation, not just rent collection, before moving for summary judgment against a nonpaying tenant.

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