1250 Broadway, 27th Floor New York, NY 10001


In 115 E. 9th St. Retail v. STA Travel, Inc. , 115 E. 9th St. Retail filed a nonpayment case against its tenant, STA Travel, Inc. (STAT). At issue was STAT's failure to pay its real-estate tax escalation and water and sewer charges.

After the New York County Civil Court awarded the landlord $37,545.84 in rent arrears, STAT appealed to the Appellate Term, First Department.

The AT1 found that STAT could not challenge the landlord's real-estate tax escalation, as the tenant had "failed to object to landlord's annual real estate tax escalation statements within 45 days of their issuance" as required by the parties' lease agreement.

As for the payment of the water and sewer charges, STAT did not contest their "reasonableness" or claim they were "inflated." Rather, the tenant argued that since the landlord had not received bills from the City for the water and sewer charges STAT was not required to remit payment. Without a lease provision which supported the tenant's position, the AT1 was of the opinion that the objection lacked a meritorious basis.

And that's STAT.

To download a copy of the Appellate Term's decision, please use this link: 115 E. 9th St. Retail v. STA Travel, Inc.