Matter of New York State Urban Development Corporation v. Nawam Entertainment, Inc

In Matter of New York State Urban Development Corporation v. Nawam Entertainment, Inc, 57 Ad3d 249 (1st Dept 2008), the Appellate Division, First Department, relying on Marraro, unanimously held that fixtures and improvements that became property of the landlord, pursuant to the terms of the lease, are not compensable. Specifically, the Appellate Division, First Department found items such as an electric receptacle, a sprinkler system, circuit breaker distribution panels, a central air conditioning system, aluminum framed glass entry doors, wooden baseboard trim, and a drywall partition had become an integral part of the building, and under the claimant's lease, were the landlord's property, and thus, not compensable.