Poughkeepsie Savings Bank, FSB v. G.M.S.Y. Associates
Court: Appellate Division of the Supreme Court of the State of New York; April 7, 1997; New York; State Appellate Court
In a legal action seeking a declaration of rights under a ground lease, the plaintiffs appealed a Supreme Court order that denied their motion for summary judgment on their first cause of action and granted the defendant's cross-motion to dismiss the complaint. The appellate court affirmed the order, requiring an appropriate judgment that plaintiffs cannot assign the lease without the defendant's consent, except when assigning to a partnership or corporation in which the plaintiffs are principal owners. The court emphasized the need to interpret lease provisions without altering their meaning or rendering any part ineffective. Specifically, it found that when Paragraphs 11 and 33 of the lease are read together, they prohibit assignment without consent, barring any claims of waiver by the defendant regarding these restrictions. Additionally, as this is a declaratory judgment action, the Supreme Court should have issued a declaration favoring the defendant. The decision was supported by the concurrence of several justices.