New York City- What a drag! Men who dress as women don’t have the right to use ladies bathrooms, an appeals court has ruled.

The decision by the Appellate Division came in the case of a Queens AIDS group, Hispanic AIDS Forum, that sued after its Jackson Heights landlord refused to renew its lease.

The landlord wanted the group to agree in writing that its transgender clients – men who identify psychologically with women and dress in female clothing – would not use the ladies room in the building.

The group sued, charging the landlord was violating state and city human rights laws.

But in a 4-to-1 decision, the appellate court found the forum’s clients were merely prohibited from using the rest rooms based on their biology, like all tenants.

In a scathing dissent, Justice David Saxe said the majority had missed the point of the lawsuit and were guilty of misstating its claims.

A lawyer for the group, Edward Hernstadt, said it’s considering whether to appeal the decision or amend and refile the suit.

“I think [the decision] does a terrible disservice to transgendered people and denies the reality of transgendered people in New York,” Hernstadt said.