Justice Elizabeth Emerson
Long Island Public Authority (LIPA) entered into an agreement with Long Island Lighting Co. (LILCO) for LIPA to acquire LILCO's electric transmission and distribution facilities, and retail operations. Part of the agreement entailed LIPA would drop all tax certiorari cases against all municipalities, school districts, and the Town of Huntington. LIPA commenced tax certiorari proceedings against the town's assessor challenging the property tax assessments on the power-generating facilities. The town sued contending it was an intended third-party beneficiary of LIPA's and LILCO's 1997 agreement, asserting six causes of action, including breach of contract. The court stated it could not conclude the town was merely an incidental beneficiary, and not an intended third-party beneficiary, noting the town produced evidence to support its contention that provisions in defendants' agreement were included to benefit the town by protecting its tax base. Also, it stated there was no requirement that the harm necessary to confer standing be actual, ruling it was reasonably likely the town would lose substantial tax revenues if the tax certiorari actions were not resolved in the town's favor. It found the town had standing, declining dismissal of the breach of contract claim.
