Gerel Corp. v Prime Eastside Holdings, LLC (2004 NY Slip Op 07447)
Gerel Corp. v Prime Eastside Holdings, LLC
2004 NY Slip Op 07447 [12 AD3d 86]
October 19, 2004
Sullivan, J.
Appellate Division, First Department
Published by New York State Law Reporting Bureau pursuant to Judiciary Law § 431.
As corrected through Wednesday, January 26, 2005
[*1]
Gerel Corp. et al., Respondents,
v
Prime Eastside Holdings, LLC, et al., Appellants.
First Department, October 19, 2004
APPEARANCES OF COUNSEL
Rivkin Radler LLP, Uniondale (Cheryl F. Korman and Evan H. Krinick of counsel), for appellants.
Stroock & Stroock & Lavan LLP, New York City (Kevin L. Smith of counsel), for respondents.
{**12 AD3d at 87} OPINION OF THE COURT
Sullivan, J.
This appeal presents the issue of whether plaintiffs, the successor landlords to which the three subject properties had been surrendered when defendants, the net lessees, defaulted on their [*2]lease obligations, have a private right of action under General Obligations Law § 7-105 to recover the tenants' security deposits.
On June 19, 2001, defendant Prime Eastside Holdings, LLC entered into 50-year net leases with plaintiffs Gerel Corp., Ruradan Corp. and Timston Corp. for three mixed-use properties located in Manhattan, known as 1100 Madison Avenue, 6-10 East 48th Street and 250 East 39th Street, respectively. Defendant Arthur Green is the principal of Prime.[FN1]
Under the three separate leases, Prime was obligated to pay monthly rent of $266,000 for 1100 Madison Avenue, $152,000 for 250 East 39th Street and $57,000 for 6-10 East 48th Street. Prime provided letters of credit, which it was required to replenish, to secure the rent obligations for a three-month period under each of the leases.