New York Central Railroad v. New York, New Haven & Hartford Railroad

24 Misc. 2d 414, 208 N.Y.S.2d 605, 1960 N.Y. Misc. LEXIS 2431
CourtNew York Supreme Court
DecidedSeptember 26, 1960
StatusPublished
Cited by8 cases

This text of 24 Misc. 2d 414 (New York Central Railroad v. New York, New Haven & Hartford Railroad) is published on Counsel Stack Legal Research, covering New York Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
New York Central Railroad v. New York, New Haven & Hartford Railroad, 24 Misc. 2d 414, 208 N.Y.S.2d 605, 1960 N.Y. Misc. LEXIS 2431 (N.Y. Super. Ct. 1960).

Opinion

Charles A. Loreto, J.

Both plaintiff New York Central and defendant New Haven on this motion ask for summary judgment. They rest their case on undisputed documents.

The questions involved in this case are of the gravest character, involving consequences of great magnitude. The court has given to them its most earnest and deliberate consideration.

Central, in its complaint, asks for judgment under article 15 of the Beal Property Law: “ 1. That defendant [New Haven] and every person claiming under it be forever barred from all claim or claims to any interest of any kind whatsoever on the property herein described [i.e., The Hotel Biltmore] ”. It also [416]*416prays for an injunction restraining the New Haven from interfering with its quiet and peaceful enjoyment of the premises.

New Haven in its first counterclaim essentially asks declaratory judgment, also pursuant to article 15 of the Real Property Law, affirming its ownership of an interest in the use of the Biltmore, such interest including (1) the right to join with Central in the construction, holding, maintenance and leasing of the Hotel Biltmore, and (2) the right to reserve a proportionate share of the rentals and other compensation accruing from any lease of the Hotel Biltmore. Other relief is also sought.

This discord or dispute over their respective interest and rights in the Biltmore has come about with the advent of two assertive, highly competitive and strong-willed men as presidents of their respective railroad companies. New Haven asserts that without its approval Central entered into a writing-dated December 8,1958, purporting to be a lease of the Biltmore premises to Realty Company (Central’s subsidiary) for a term of six years and at a rental set unilaterally and arbitrarily by Central and made payable to Central, in violation of New Haven’s rights. New Haven claims that Central, having acted in such highhanded fashion, has denied it the contractual rights it seeks to have affirmed by court decree. Also it declares that Central has deprived it of a credit to the Terminal account of about $1,600,000 with a consequent loss to New Haven of $1,000,000 to date, such amount representing the sum it has been required to contribute to the maintenance and operation of G-rand Central Terminal over and above the amount it would have had to contribute if proper credits had been made to the Terminal account.

It is undisputed that Central, as sole lessor, executed a lease of the Biltmore dated December 8, 1958 to Realty Company for a term of six years at a rental and upon terms fixed by Central. New Haven had refused to approve such a lease and to add its signature to it. It notified Realty that it considered the lease invalid and it likewise communicated with subtenants and concessionaires.

The complaint of Central generally alleges that although prior to May 31, 1957 New Haven had an undivided interest in those premises in accordance with a 1913 Agreement, such interest ceased on that date and that New Haven’s claim to a joint interest is adverse to Central’s exclusive ownership and enjoyment.

New Haven’s answer consists of denials except as to written documents referred to in the complaint. It also sets forth three [417]*417counterclaims, each covering a separate parcel of property. The motion before the court is addressed solely to the first counterclaim relating to the Hotel Biltmorc property. In brief, this counterclaim sets forth the history of the relationship between the two railroads, the contracts entered into between them, including the “ 1907 Agreement ”, also referred to as “ Terminal Agreement ”, and the 1913 Amendment ” agreement. In the light of the history of the relationship and all the agreements between the parties, it alleges that its contractual right ‘ ‘ to join ” in leasing the Biltmorc was denied when Central insisted upon dictating the terms of such leasing and entered into it without its consent or approval. Accordingly, New Haven prays for the declaratory judgment already stated.

New Haven moves for an order dismissing the complaint and directing summary judgment in its favor on its first counterclaim, pursuant to rule 113 of the Rules of Civil Practice, and Central in its' principal opposing affidavit requests summary judgment on its complaint in its favor.

The adjudication of the rights of the parties to this litigation to a considerable extent will determine their rights in the many buildings erected with their joint contributions in the Grand Central Terminal area from 42nd Street to 52nd Street in New York City.

Pointedly, Central takes the position that New Haven’s interest in the Biltmore property ceased in 1957, when it had been fully reimbursed for its advances toward the construction of the hotel and thati£ thereafter New Haven had only the contractual right, if it cared to exercise it, to join in the holding, maintenance, and leasing of the Biltmorc and, if it joined therein, the right to have the rentals of the Biltmore credited to a so-called Terminal account ”.

The rights of the parties are derived from and wholly dependent upon their written agreements entered into over the years. There is no dispute as to what these are and the parties do not claim that they have been modified by any conversations or Avritings not submitted on this application. Since no additional proof would be presented upon a trial and Avhat is involved is a construction or interpretation of the rights of the parties, it is appropriate to consider and determine the matter Avithout a trial.

There is no doubt that the agreements furnish the basis of New Haven’s rights in the Biltmore. The early history of the entry of the Nbav Haven Railroad into New York City and its use of the tracks, facilities and the station terminal at 42nd Street and Park Avenue belonging to the New York & Harlem [418]*418Railroad Company provides a background for the “ 1907 Agreement ” between Central and New Haven. That history gives the evolution of the Grand Central Terminal and the setting for the 1907 Agreement ”.

By agreement dated March 17, 1848, Harlem granted to New Haven the right to run its trains over Harlem’s tracks into Manhattan to its terminus at Fourth Avenue and 26th Street. This continued until 1872 when Harlem, New Haven and Central considered the desirability of their common use of a. railroad station to be located at 42nd Street and Park Avenue. Harlem acquired the land for this station and constructed the Grand Central Depot. By an agreement dated November 1, 1872 (referred to as the 1872 Tripartite Agreement), Harlem leased to New Haven and Central certain tracks, platforms and spaces in the newly constructed depot during their charter terms. Shortly thereafter, by lease dated April 1, 1873, Harlem leased all its properties extending into Manhattan to Central for a term of 401 years, subject to the rights of New Haven under the 1848 Agreement, and Harlem also assigned to Central its rights and obligations under the 1872 Tripartite lease. By an agreement dated March 23, 1899, whereby the Grand Central Depot was altered, reserving specific tracks and facilities for Harlem, it was agreed that the station become a union station in which Central and New Haven would share in common the tracks and facilities of the entire depot.

Following a train collision and fire, the.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Penn Central Corp. v. Consolidated Rail Corp.
611 F. Supp. 285 (Special Court under the Regional Rail Reorganization Act, 1985)
Reltron Corp. v. Voxakis Enterprises, Inc.
57 A.D.2d 134 (Appellate Division of the Supreme Court of New York, 1977)
Plaza v. Great Atlantic & Pacific Tea Co.
55 A.D.2d 266 (Appellate Division of the Supreme Court of New York, 1976)
New Haven Inclusion Cases
399 U.S. 392 (Supreme Court, 1970)
New York, New Haven & Hartford Railroad v. United States
289 F. Supp. 418 (S.D. New York, 1968)

Cite This Page — Counsel Stack

Bluebook (online)
24 Misc. 2d 414, 208 N.Y.S.2d 605, 1960 N.Y. Misc. LEXIS 2431, Counsel Stack Legal Research, https://law.counselstack.com/opinion/new-york-central-railroad-v-new-york-new-haven-hartford-railroad-nysupct-1960.