Tenants Must Pay for Vault Charges

July 31, 1994

LVT Number: 9016

Landlord sued tenants for nonpayment of vault taxes. Tenants' leases gave them the right to use and occupy all vault space, but required them to pay all vault taxes. The trial court ruled that tenants only had to pay taxes for the vault space they used. Landlord appealed, and won. The vault tax clause in the leases should be enforced. If tenants hadn't intended to use the space, or wanted to be liable for only a portion of the vault taxes, they should have negotiated the vault clause in their leases differently.

Landlord sued tenants for nonpayment of vault taxes. Tenants' leases gave them the right to use and occupy all vault space, but required them to pay all vault taxes. The trial court ruled that tenants only had to pay taxes for the vault space they used. Landlord appealed, and won. The vault tax clause in the leases should be enforced. If tenants hadn't intended to use the space, or wanted to be liable for only a portion of the vault taxes, they should have negotiated the vault clause in their leases differently.

Warren Street Owners, Inc. v. Mendlow: NYLJ, p. 21, col. 6 (7/28/94) (App. T. 1 Dept.; Parness, JP, McCooe, Glen, JJ)

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