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MacMillan, Inc. v. CF Lex Associates

New York Court of Appeals
437 N.E.2d 1134 (1982)


Facts

Campeau Corporation (U.S.), Inc. (defendant) owned the Macmillan Building, in which MacMillan, Inc. (plaintiff) was a tenant. CF Lex Associates (defendant) owned the land on which the building was located. Campeau and CF Lex, which together owned all of the land on the Macmillan Building’s block, signed a declaration of zoning lot restrictions. The declaration merged the properties on the block for zoning purposes so the block would be treated as a single lot. CF Lex also bought airspace rights above the Macmillan Building from Campeau. CF Lex’s purpose in executing the declaration and buying the airspace was to build a taller building next to the Macmillan Building than would have been possible without these transactions. A building’s total permissible bulk was based on the size of the zoning lot of which the building was apart. MacMillan, Inc. brought suit based on a New York City Zoning Resolution that required consent of each party in interest in the “tract of land” for a zoning lot merger to be effective. The New York Supreme Court granted CF Lex’s motion to dismiss on the ground that MacMillan, Inc. was not a party in interest in the tract of land. The appellate court reversed. CF Lex appealed.

Rule of Law

Issue

Holding and Reasoning (Jones, J.)

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