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P.A. BLDG. CO. v. CITY OF NY

10 N.Y.3d 430 (2008)

889 N.E.2d 983

860 N.Y.S.2d 1

P.A. BUILDING COMPANY, Respondent, v. CITY OF NEW YORK, Appellant.

Court of Appeals of the State of New York.

Decided May 1, 2008.

Attorney(s) appearing for the Case

Michael A. Cardozo, Corporation Counsel, New York City (Ronald E. Sternberg, Leonard Koerner and Mindy Koenig-Berman of counsel), for appellant.

Victor & Bernstein, P.C., New York City (Donald M. Bernstein of counsel), for respondent.

Chief Judge KAYE and Judges CIPARICK, GRAFFEO and PIGOTT concur with Judge READ; Judge SMITH dissents in part in a separate opinion in which Judge JONES concurs.

OPINION OF THE COURT

READ, J.

In this protracted landlord-tenant dispute, we are asked to decide whether asbestos abatement costs incurred by the landlord were operating expenses under the terms of the relevant commercial leases. We conclude that they were not. As a result, the landlord improperly billed these costs to the tenant as additional rent under the leases' escalation clauses. Further, we conclude...

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