Rudd v. 176 W. 87th St. Owners Corp

In Rudd v. 176 W. 87th St. Owners Corp. (283 AD2d 202 [1st Dept 2001]), the First Department affirmed the trial court's determination that, under the parties' commercial lease calling for the tenant's payment of a specified share of any real estate tax escalations against the building, the tenants were entitled to a refund of rent representing their proportionate share of a real estate tax refund that the landlord received in a tax certiorari proceeding. In doing so, the Court stated: to "hold otherwise would allow the landlord to realize a profit from the tenants' compliance with a clause that was not intended to provide the landlord with a windfall" (id.)