Taylor v. City of New York

144 Misc. 2d 1029, 545 N.Y.S.2d 521, 1989 N.Y. Misc. LEXIS 558
CourtCivil Court of the City of New York
DecidedAugust 30, 1989
StatusPublished

This text of 144 Misc. 2d 1029 (Taylor v. City of New York) is published on Counsel Stack Legal Research, covering Civil Court of the City of New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Taylor v. City of New York, 144 Misc. 2d 1029, 545 N.Y.S.2d 521, 1989 N.Y. Misc. LEXIS 558 (N.Y. Super. Ct. 1989).

Opinion

OPINION OF THE COURT

Ira B. Harkavy, J.

The court is required to determine the validity of an indemnification clause in a lease between Arenia and Ernestine Institute, Inc. as landlord-lessor (Arenia) and the City of New York, as tenant-lessee (City).

On or about May 4, 1972, pursuant to a resolution of the Board of Estimate, adopted November 11, 1971, the City entered into a lease agreement leasing from Arenia the entire premises known as 19 Grant Square, Brooklyn, New York. The leased building was to be utilized by the Department of Social Services as a senior citizen’s center along with a child care facility.

On April 15, 1985, plaintiff, Rosemary Taylor, left the building by the main exit and started descending the front steps to get to the sidewalk. As she was descending, she stepped upon an accumulation of broken glass, lost her footing and fell with her right hand coming into contact with the broken glass. Her right hand was severely cut, causing injury to nerves and tendons with permanent injury to the middle three fingers of her right hand.

The issue of liability was submitted to a jury which apportioned negligence in accordance with Dole v Dow Chem. Co. (30 NY2d 143). The jury found defendant, City, 70% negligent, defendant, Arenia, 20% negligent and the plaintiff, Rosemary Taylor, 10% negligent. The jury then awarded plaintiff for her damages a verdict in the aggregate amount of $800,000.

[1031]*1031Pursuant to a resolution of the Board of Estimate, adopted November 11, 1971, the tenant, City, was "to save the landlord harmless against all claims for all injuries resulting from tenant’s negligence in connection with the occupancy of these premises.” Based upon the resolution of the Board of Estimate, article 10 of the lease agreement dated May 4, 1972 read as follows: "10. To save the landlord harmless against all claims for all injuries resulting from tenant’s negligence in connection with its occupancy of these premises.”

Defendant, City, contends that General Obligations Law § 5-321 makes the indemnification clause in article 10 of the lease void and unenforceable, and even if the court finds the article enforceable, that the lease does not reflect "an unmistakable intent” of the parties that the landlord is to be granted indemnification for its own negligence rather than merely contribution for the tenant’s proportionate share of liability.

Defendant, Arenia, contends that the City’s contractual obligation, to indemnify them as landlord, is valid under the General Obligations Law and that the clause in the lease is clear and it shows an unmistakable intention of the parties that complete indemnity is triggered once the jury finds the City negligent to any degree.

The issues raised, which must be determined by this court, are as follows: (1) Does the indemnification clause in article 10 of the lease violate General Obligations Law § 5-321 making the lease provision void and unenforceable? and (2) If the lease provision is not void and unenforceable, was there an unmistakable intent of the parties that the tenant (City) should indemnify the landlord in a circumstance where both the landlord and tenant were found negligent?

General Obligations Law § 5-321 reads as follows:

"Agreements exempting lessors from liability for negligence void and unenforceable

"Every covenant, agreement or understanding in or in connection with or collateral to any lease of real property exempting the lessor from liability for damages for injuries to person or property caused by or resulting from the negligence of the lessor, his agents, servants or employees, in the operation or maintenance of the demised premises or the real property containing the demised premises shall be deemed to be void as against public policy and wholly unenforceable.”

General Obligations Law § 5-321 essentially provides that agreements that would exempt lessors from liability for the [1032]*1032lessor’s negligence are void and unenforceable, since such an arrangement would be against public policy.

The legislative history of General Obligations Law § 5-321 and the wording of the statute " 'exempting the lessor from liability for damages for injuries * * * resulting from the negligence of the lessor’ strongly suggests that it was directed primarily to exculpatory clauses in leases whereby lessors are excused from direct liability for otherwise valid claims which might be brought against them by others.” (Hogeland v Sibley, Lindsay & Curr Co., 42 NY2d 153, 160 [1977].) The legislation was passed in a large part as a reaction to the practice of landlords including indemnification agreements in their leases with residential tenants. In considering the legislation, the Legislature looked at the unequal bargaining power between residential tenants and landlords. Based upon their findings, General Obligations Law § 5-321 was passed making indemnification clauses exculpating landlords for their own negligence in maintaining buildings void and unenforceable.

In this matter it was the tenant-lessee, the City of New York, who provided the terms of the indemnification, both in the lease agreement and the resolution enacted by the Board of Estimate. The parties to the lease can be fairly categorized as "sophisticated business people” who negotiated, agreed and accepted the terms of the lease as it was executed. If any party had extra leverage, it was the City of New York who was agreeing to lease a "specialty” building from the landlord, and who required the landlord, at the landlord’s own cost and expense, to renovate the "building according to plans and specifications prepared by the Department of Social Services of the City of New York as more fully set forth in section 1 of the lease. Under the circumstances herein, the exculpation of the landlord from any liability caused or occasioned by the use or occupancy of the premises is not void and unenforceable as against public policy. (La Vack v National Shoes, 124 AD2d 352 [3d Dept 1986].)

If the action was brought by the tenant for damages due to the negligence of the landlord, the landlord could not use the indemnification clause of the lease as a defense. But this is not the case herein. The case herein is a third-party claim for personal injuries in which both the landlord and the tenant have been found negligent. It is the third-party action coupled with the finding that the tenant was negligent that triggers the indemnification responsibilities of the tenant, City of New York. In the face of the plaintiffs third-party claim, the [1033]*1033contractual arrangements between the City and Arenia remains a valid binding obligation under General Obligations Law § 5-321.

The jury found both the tenant, City of New York, and the landlord, Arenia, negligent. They are jointly and severally liable. Each» defendant is jointly and severally liable to the plaintiff for the whole amount of the judgment. The plaintiff can collect the whole judgment from either or both of the defendants regardless of the jury’s apportionment of liability. Therefore, one defendant can contract with another defendant to be liable for the payment of the joint obligation of both. General Obligations Law § 5-321 does not prohibit such an arrangement. In the instant case the tenant covenanted and agreed to indemnify the landlord for claims where there is negligence on the part of the tenant or on the part of both of them.

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Cite This Page — Counsel Stack

Bluebook (online)
144 Misc. 2d 1029, 545 N.Y.S.2d 521, 1989 N.Y. Misc. LEXIS 558, Counsel Stack Legal Research, https://law.counselstack.com/opinion/taylor-v-city-of-new-york-nycivct-1989.