46 N.Y.2d 211 (1978)

George Backer Management Corp., Respondent, v. Acme Quilting Co., Inc., Appellant.

Court of Appeals of the State of New York.

Decided December 7, 1978.

Attorney(s) appearing for the Case

Richard M. Zaroff, Stanley H. Schindler and Burton I. Manis for appellant.

Jay A. Kranis and Charles L. Sylvester for respondent.

Judges JASEN, GABRIELLI, WACHTLER and COOKE concur with Judge FUCHSBERG; Chief Judge BREITEL dissents and votes to reverse in a separate opinion in which Judge JONES concurs.


Early in 1970, appellant, Acme Quilting Company, entered into an agreement with the respondent, George Backer Management Corporation, for the rental of office space in the respondent's building. The lease the parties ultimately signed included an escalation clause under which increases are keyed to certain wage rate increases. The dispute in this case, in the main raising issues of ambiguity, mutual...

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