1250 Broadway, 27th Floor New York, NY 10001

NOW THIS IS AN OVERCHARGE!

00448337.jpgBanco National (whose interests were transferred to Citibank and then to Citicorp North America) had a 16-year lease with the then building-owner, Longstreet (whose interests were transferred to 767 Fifth Avenue and then to Fifth Avenue 58/59 Acquisition).

The tenants alleged that, beginning back in 1993, the owners miscalculated the rent and overcharged them about $564,531.

When the tenants' suit to recover that money was dismissed by the New York County Supreme Court, they appealed to the Appellate Division, First Department.

Interestingly, there was little sympathy for the tenants' position, particularly because they were "highly sophisticated entities" which had paid the monies over nine years, without protest. As a result, the AD1 concluded that the tenants' claim was barred by the doctrine of "voluntary payment."

Guess who went through withdrawals?

00046557.gifTo view a copy of the Appellate Division's decision, please use this link: Citicorp N. Am., Inc. v. Fifth Ave. 58/59 Acquisition Co., LLC

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