MILLIKEN & CO. v. CON EDISON


84 N.Y.2d 469 (1994)

644 N.E.2d 268

619 N.Y.S.2d 686

Milliken & Co. et al., Respondents, v. Consolidated Edison Company of New York, Inc., Appellant, and City of New York et al., Respondents. (And a Third-Party Action.) (Action No. 1.) Gold Mills, Inc., Respondent, v. City of New York et al., Respondents, and Consolidated Edison Company of New York, Inc., Appellant. (And a Third-Party Action.) (Action No. 2.) I.S.K. Manhattan, Inc., Doing Business as McDonald's #2276, et al., Respondents, v. City of New York et al., Respondents, and Consolidated Edison Company of New York, Inc., Appellant. (And Third- and Fourth-Party Actions.) (Action No. 3.)

Court of Appeals of the State of New York.

Decided December 1, 1994.


Attorney(s) appearing for the Case

Maura A. Kilroy, New York City, and Richard W. Babinecz for appellant in the first, second and third above-entitled actions.

Paul A. Crotty, Corporation Counsel of New York City (Michael McLoughlin and Stephen J. McGrath of counsel), for City of New York, respondent in the first, second and third above-entitled actions.

Kornstein Veisz & Wexler, New York City (Joel Bossom, Marvin Wexler, Lawrence C. Fox and Emily Rosdeitcher of counsel), and Stuart S. Sherman for Empire City Subway Company (Limited) and another, respondents in the first, second and third above-entitled actions.

Wien, Malkin & Bettex, New York City (Douglas D. Aronin and Eli R. Mattioli of counsel), and Smith, Mazure, Director, Wilkins Young, Yagerman & Tarallo, P. C., for HelmsleySpear, Inc., and others, respondents in the first, second and third above-entitled actions.

Gair, Gair, Conason Steigman & Mackauf, New York City (Rhonda E. Kay of counsel), for Milliken & Co. and others, respondents in the first and second above-entitled actions.

Bigham Englar Jones & Houston, New York City (James J. Taylor and Elaine P. Chryssochoos of counsel), for I.S.K. Manhattan, Inc., and others, respondents in the third above-entitled action.

Huber Lawrence & Abell, New York City (John D. Draghi and Michael Zaitz of counsel), for Central Hudson Gas & Electric Corporation and others, amici curiae, in the first, second and third above-entitled actions.

Chief Judge KAYE and Judges SIMONS, TITONE, SMITH, LEVINE and CIPARICK concur.


BELLACOSA, J.

In early August 1983, over 11 years ago, an underground water main burst near 38th Street and 7th Avenue in Manhattan. The unleashed waters flooded the subbasement of the Navarre Building at 500-512 Seventh Avenue, where Consolidated Edison maintained an electricity supply substation. A fire broke out in the subbasement when the waters seeped into the...

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