New York Defeats Bankrupt Company’s Asbestos Contamination Suit

Jan. 5, 2022, 10:49 PM

The bankrupt owner of a Brooklyn warehouse lost its bid to hold New York City accountable for asbestos contamination and to avoid decades of property taxes.

5200 Enterprises Ltd. waited too long to assert its trespass claim against the city and to challenge the tax assessments, the U.S. Court of Appeals for the Eleventh Circuit held Wednesday, affirming a bankruptcy court.

5200 Enterprises discovered asbestos contaminants less than a year after purchasing the property in 1986, when conducting inspections so that it could lease the building back to the city.

Sometime in the 1940s, New York had buried the former ...

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