1133 Lexington Ave. Realty Corp. v. Seiden Lexington Holdings, LLC

2024 NY Slip Op 30837(U)

• Court: New York Supreme Court, New York County
• Decided: March 15, 2024
• Status: Unpublished

Opinion

1133 Lexington Ave. Realty Corp. v Seiden Lexington Holdings, LLC 2024 NY Slip Op 30837(U) March 15, 2024 Supreme Court, New York County Docket Number: Index No. 160933/2022 Judge: Lyle E. Frank Cases posted with a "30000" identifier, i.e., 2013 NY Slip Op 30001(U), are republished from various New York State and local government sources, including the New York State Unified Court System's eCourts Service. This opinion is uncorrected and not selected for official publication. INDEX NO. 160933/2022 NYSCEF DOC. NO. 99 RECEIVED NYSCEF: 03/15/2024

SUPREME COURT OF THE STATE OF NEW YORK NEW YORK COUNTY PRESENT: HON. LYLE E. FRANK PART 11M Justice ----------------------------------------------------------------- ----------------X INDEX NO. 160933/2022 1133 LEXINGTON AVE. REALTY CORP., MOTION DATE 09/19/2023 Plaintiff, MOTION SEQ. NO. 003 - V -

SEIDEN LEXINGTON HOLDINGS, LLC,OFFICE OF THE CITY REGISTER OF THE CITY OF NEW YORK, 1131 DECISION + ORDER ON PROPERTY OWNER LLC, 150-152 EAST 79, LLC, MOTION

Defendant. ------------------------------------------------------------------- --------------X

The following e-filed documents, listed by NYSCEF document number (Motion 003) 57, 58, 59, 60, 61, 62, 63, 64, 65,66, 67,68,69, 70, 71, 72, 73, 74, 75, 76, 77, 78, 79, 80, 81, 82,83,84, 85, 86,87,88, 89, 90, 91, 92, 93, 94, 95, 96, 97, 98 were read on this motion to/for JUDGMENT-SUMMARY

Upon the foregoing documents, plaintiffs motion for summary judgment is granted.

Background

This case involves a dispute between the property owners of two adjacent lots in

Manhattan. Plaintiff 1133 Lexington Ave. Realty Corp., ("plaintiff') is the owner of the property

located at 1133 Lexington Avenue, New York, New York ("Lot 153"). Intervenor Defendant, W

79th Street Owner, LLC ("intervenor defendant") is the owner of the property located at 1131

Lexington Avenue, New York, New York ("Lot 154").

Plaintiff commenced this action to cancel two recorded documents, one which created a

single zoning lot consisting of Lots 153 and 154, and the Development Agreement which entitled

the Lot 154 owner to utilize certain unused development rights. As none of the named defendants

currently own Lot 154, the current owner, W 79th Street moved to intervene. This Court granted

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W 79th Street's motion to intervene. Plaintiff now moves for summary judgment. Intervenor

defendant opposes.

In 2016, Plaintiff and Seiden Lexington Holdings, LKLC ("Seiden") entered into a

contract whereby Seiden, agreed to purchase Lot 153 from plaintiff. According to plaintiff, in

anticipation with the potential sale, plaintiff and defendant Seiden executed a Declaration of

Zoning Lot Restrictions and a Zoning Lot and Development Agreement and Temporary

Construction Licenses. The Zoning Declaration was recorded against the Subject Property with

the Office of the City Register of the City of New York, County of New York. The documents

were executed by Seiden, on behalf of Lot 154. However, at the time the documents were

executed, third party Ana Development was the owner of Lot 154. According to plaintiff, Ana

Development has contracted to sell Lot 154 to Seiden Lexington Holdings, but the zoning

documents were executed prior to the sale.

Plaintiff therefore seeks an Order declaring the Memorandum of Sale, Zoning

Declaration and Development Agreement and Licenses to no longer be in full force and effect

and directing the Office of the City Register of the City of New York to cancel and discharge

such instruments as encumbrances to the Subject Property.

Discussion

Plaintiff argues that the zoning documents should be cancelled as Ana Development, as

owner of Lot 154, and thus a necessary "party in interest," did not execute the documents.

Intervenor defendant does not dispute that Ana Development was a party in interest and didn't

sign the documents; however, intervenor argues that the language "all parties in interest (as

defined in the [Zoning] Resolution) to the Property as shown on the Zoning Lot Certification of

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Choice Abstract ... have joined in this Declaration or have waived their right to do so,"

establishes Ana Development waived its rights.

Plaintiff contends that as Ana Development was not a party to the documents, nor is Ana

Development identified or named, there can be no waiver of its right. The Court agrees. Ana

Development was not a party to the zoning documents. That the documents state all parties have

waived their right is of no consequence when the executing party had no ability to waive such

parties' rights. Moreover, Section 12-10(d) of the New York City Zoning Resolution requires

"[e]ach declaration [to] be executed by each party in interest .... " That did not occur here. As

such, the zoning documents are void.

The Court does not find intervenor defendant's argument that regardless, the documents

should remain in effect under a theory of equitable estoppel availing. It is well established that in

order to prevail on the theory of equitable estoppel, the party seeking estoppel must demonstrate

a lack of knowledge of the true facts; reliance upon the conduct of the party estopped; and a

prejudicial change in position. Burrowes v. Combs, 25 A.D.3d 370 [1st Dept 2006]. Here,

intervenor defendant fails to establish reliance upon the conduct of the party estopped. Here, it

was Seiden, not plaintiff, who entered into the zoning agreements and allegedly made a promise

to which the intervenor defendant relies on. That Seiden represented himself as the owner of the

property in the zoning documents before the sale had been completed, cannot be imputed to

plaintiff. Moreover, as plaintiff argues, this information was discoverable to intervenor defendant

had they engaged in diligent research regarding title of the property.

The Court has reviewed the remaining contentions of the intervenor defendant and finds

them unavailing.

Accordingly, it is hereby

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ADJUDGED that plaintiffs motion for summary judgment is granted; and it is further

ORDERED and DECLARED that the recorded April 19, 2016, Memorandum of Sale,

Zoning Declaration and Zoning Lot and Development Agreement to be null, void and

unenforceable, and directing the City Register of the City of New York to cancel such

instruments of record; and it is further

ORDERED that the portion of this Court's July 12, 2023 Decision and Order staying

Plaintiffs motion for default judgment against the non-appearing parties, to wit: SEIDEN

LEXINGTON HOLDINGS, LLC, OFFICE OF THE CITY REGISTER OF THE CITY OF

NEW YORK, 1131 PROPERTY OWNER LLC,150- 152 EAST 79, LLC, is vacated and

plaintiff is awarded judgment by default against those non-appearing parties for the same relief

sought and granted herein.

3/15/2024 DATE LYLE E. FRANK, J.S.C.

~ CHECK ONE: CASE DISPOSED NON-FINAL DISPOSITION

GRANTED □ DENIED GRANTED IN PART □ OTHER APPLICATION : SETTLE ORDER SUBMIT ORDER

CHECK IF APPROPRIATE : INCLUDES TRANSFER/REASSIGN FIDUCIARY APPOINTMENT □ REFERENCE

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