JPMorgan Chase Bank v. Reibestein
Opinion of the Court
Order, Supreme Court, New York County (Ronald A. Zweibel, J.), entered September 1, 2005, which granted petitioner tenant’s application to stay arbitration of an appraisal of the leased property demanded by respondent landlord, denied landlord’s “cross petition” seeking damages for breach of the parties’ lease and directed arbitration thereof, and denied landlord’s motion for pre-arbitration discovery, unanimously affirmed, with costs.
The arbitrability of the third appraiser’s valuation of the leased premises, which the lease provides is binding on the parties, is not an arbitrable issue. Previous judicial findings arguably to the contrary made in connection with prior lease renewals are not res judicata, since such findings were made before the parties executed the lease extension and modification agreement that changed the valuation procedure (see Kappas v T.W. Kutter, Inc., 192 AD2d 402, 402-403 [1993]). While both the pre and postmodification leases provided that the third appraiser’s valuation is binding, the former, but not the latter, also provided for “excluding [from the property’s value] such improvement costs and building costs as are paid for by the Tenant.” It was landlord’s position in the prior proceedings that since the appraisal procedure in the premodification lease made the amount of such exclusion entirely dependent on information supplied by
Case-law data current through December 31, 2025. Source: CourtListener bulk data.