New York Law Review

Waldbaum, Inc. v. Finance Adm’r of City of N. Y., 68 N.Y.2d 130 (1986): Standing in Tax Certiorari Proceedings for Partial Lessees

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The New York Law Review

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Waldbaum, Inc. v. Finance Adm’r of City of N. Y., 68 N.Y.2d 130 (1986)

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A fractional lessee lacks standing to challenge a tax assessment on a property unless the lease explicitly requires the lessee to pay the lessor’s taxes directly or grants the lessee the contractual right to challenge the assessment in the lessor’s name.

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Summary

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Waldbaum, a partial lessee, sought to challenge real property tax assessments on a property it leased from Carlyle. Waldbaum’s lease included a tax escalation clause, requiring it to pay a portion of the property taxes exceeding a base amount, offset by a percentage of gross sales. The court held that Waldbaum lacked standing to bring a tax certiorari proceeding because it was not directly obligated to pay the property taxes and lacked explicit contractual authorization to challenge the assessment in the lessor’s name. This decision emphasizes the requirement of a direct and adverse pecuniary impact for a non-owner to have standing in such proceedings.

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Facts

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In 1961, Waldbaum’s subsidiary leased 49% of Carlyle Shopping Center’s premises for 20 years. Carlyle was responsible for paying the property taxes. Waldbaum’s lease included a

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