McKee v. Wellington Estates, Ltd.

• Citation: 470 N.Y.S.2d 139,60 N.Y.2d 853
• Parties: , 458 N.E.2d 380 Robert E. McKEE, Appellant, v. WELLINGTON ESTATES, LTD., et al., Respondents.
• Decision Date: 03 November 1983
• Court: New York Court of Appeals

Page 139

470 N.Y.S.2d 139

60 N.Y.2d 853, 458 N.E.2d 380

Robert E. McKEE, Appellant, v. WELLINGTON ESTATES, LTD., et al., Respondents.

Court of Appeals of New York.

Nov. 3, 1983.

[60 N.Y.2d 855] Grant S. Lewis, New York City, for appellant.

Norman Flitt, New York City, for respondents.

OPINION OF THE COURT MEMORANDUM.

The order of the Appellate Division, 94 A.D.2d 686, 463 N.Y.S.2d 11, should be affirmed, with costs.

The language of the General Obligations Law ( § 7-103, subd. 2) provides two alternatives for the disposition of accrued interest, less administration expenses, by a landlord: to hold the interest in trust or to make annual payments to the tenant. Neither the statutory language nor the legislative history mandates that a landlord apply the accrued interest to a subsequent increase in the security deposit. Nor did the Appellate Division abuse its discretion in awarding costs and disbursements to defendants.

COOKE, C.J., and JASEN, JONES, WACHTLER, MEYER, SIMONS and KAYE, JJ., concur.

On review of submissions pursuant to rule 500.2(b) of the Rules of the Court of Appeals (22 NYCRR 500.2[g] ), order affirmed, with costs, in a memorandum.