MRI Broadway Rental, Inc. v. United States Mineral Products Co.

242 A.D.2d 440, 662 N.Y.S.2d 114, 1997 N.Y. App. Div. LEXIS 8772
Appellate Division of the Supreme Court of the State of New York·Decided September 16, 1997·Published·Cited by 16 cases

Opinion

Order, Supreme Court, New York County (Stanley Sklar, J.), entered on or about April 1, 1996, which, to the extent appealed from, denied defendant Giamboi Brothers, Inc.’s motion, pursuant to CPLR 3212 and 3211 (a) (5) and (7), to dismiss the first, second, third, fourth and sixth causes of action, unanimously reversed, on the law, without costs or disbursements, and the motion granted.

In 1970, prior to the 1971 completion of the building known as 1633 Broadway, the New York City Department of Air Resources had successfully enjoined the spraying of asbestos insulation at three Manhattan buildings, one of which was 888 7th Avenue, managed by the same agent, Paramount Group, Inc. (PGI), as managed 1633 Broadway, based upon the then known hazardous nature of airborne asbestos. In 1973, the United States Environmental Protection Agency and the Mount Sinai School of Medicine commenced a nationwide study of buildings containing asbestos, including 888 7th Avenue, and published its report in 1975. From 1975 to 1985, the general awareness of the dangers of friable asbestos in large buildings increased. In 1985, Local Law No. 76 was enacted in New York City, effective December 2, 1986, establishing procedures for the abatement of asbestos where the renovation or demolition of premises would cause a disturbance with respect to the asbestos. In anticipation of the new law, PGI retained environmental consultants, who conducted air monitoring in both 888 7th Avenue and 1633 Broadway, to develop an asbestos management plan. In or about May 1987, PGI adopted a policy of removing Asbestos Containing Material (ACM), whenever construction or renovation had the potential to disturb it. It is undisputed that, in late 1986 and for the first six months of 1987, plaintiff, the owner of 1633 Broadway since 1976, [441] undertook substantial asbestos abatement work on the 16th, 19th, 23rd, 26th, 33rd, 34th and 38th floors of 1633 Broadway and that, as of June 30, 1987, approximately $600,000 of asbestos abatement work had been performed by various contractors specializing in that work. Plaintiff argues, with support from affidavits from various PGI officers, that all the abatement work was performed for economic purposes, that is, either in response to the concerns of potential or current tenants aware of the dangers of asbestos or to remain competitive in the marketplace in attracting commercial tenants. Plaintiff argues that neither the fact that it knew that asbestos was used in the building nor that it conducted asbestos abatement work is indicative that the asbestos in the building constituted a health hazard, i.e., that the building was contaminated. The record shows otherwise. For example, a letter from Kaselan & D’Angelo (K&D), one of the asbestos consultants hired by PGI, to one of its asbestos abatement contractors stated that K&D had performed asbestos analysis on building material samples, which were found to contain asbestos, from the 26th floor of 1633 Broadway. It is also uncontested that a PGI officer on April 14, 1987 (19th and 26th floors) and May 11, 1987 (16th floor), respectively, executed the official asbestos removal notification under certification to the New York City Department of Environmental Protection (DEP) relating to the removal of the non-asbestos ceiling tiles and asbestos. The certifications are required by regulation whenever friable asbestos is being removed. In addition, as the IAS Court noted, on June 3, 1987, a complaint was filed, anonymously, with DEP alleging that asbestos was flying around the 26th floor. A responding City inspector found that non-asbestos ceiling tiles had been removed from the 26th floor and labeled as ACM waste. The contract cost of the abatement of asbestos on the 26th floor alone was approximately $400,000. The two 1987 abatement projects are at issue for Statute of Limitations reasons because plaintiff claims it was unaware that undisturbed asbestos could cause a problem in the building until 1988 when K&D so apprized it. If this were the accrual date, the action would be timely. It is conceded that plaintiff’s tort claims are time-barred if they accrued before August 28, 1987.

By summons and complaint dated August 27, 1990, plaintiff sued defendants, the applier (Giamboi Brothers, Inc.) and manufacturers (United States Mineral Products Company and Isolatek Corporation) of the asbestos-containing fireproofing in the building, alleging that such fireproofing is dangerous, unsafe and hazardous. Its complaint is apparently intentionally left vague in that there is no allegation that the 1633 [442] Broadway building was contaminated or rendered hazardous at any specific time. Rather, plaintiff alleges that “[t]here are asbestos-containing materials in use in the * * * [b]uilding” since construction was completed in 1971 and that “[d]uring this period, and continuing to the present and into the future asbestos fibers have damaged and continuously and repeatedly will cause physical damage to the [s]ubject [b]uilding.” In that regard, plaintiff alleged that it has sustained injury because it had to remove or contain the fireproofing to prevent further damage to the structure and its components and occupants. Defendants have appealed from the denial of their summary judgment motion to the extent that it denied dismissal of the first (negligence), second (restitution), third (indemnification), fourth (strict product liability) and sixth (prima facie tort) causes of action. In denying the motion to the extent it did, the IAS Court held that the mere presence of asbestos or the general knowledge that such material can be harmful is insufficient to trigger the running of the Statute of Limitations. We reverse.

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MRI Broadway Rental, Inc. v. United States Mineral Products Co., 242 A.D.2d 440, 662 N.Y.S.2d 114, 1997 N.Y. App. Div. LEXIS 8772 (N.Y. Ct. App. 1997).

242 A.D.2d 440 (MRI Broadway Rental, Inc. v. United States Mineral Products Co.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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