200 Prince Realty v. Greenberg

129 Misc. 2d 962, 494 N.Y.S.2d 815, 1985 N.Y. Misc. LEXIS 2855
CourtCivil Court of the City of New York
DecidedOctober 10, 1985
StatusPublished

This text of 129 Misc. 2d 962 (200 Prince Realty v. Greenberg) is published on Counsel Stack Legal Research, covering Civil Court of the City of New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
200 Prince Realty v. Greenberg, 129 Misc. 2d 962, 494 N.Y.S.2d 815, 1985 N.Y. Misc. LEXIS 2855 (N.Y. Super. Ct. 1985).

Opinion

OPINION OF THE COURT

Alice Schlesinger, J.

Petitioner commenced this holdover proceeding with the service of a 30-day notice of termination after the expiration of the last lease for the premises. He contends that respondent, as the assignee of that lease, has no right to a renewal lease even though the premises are subject to the Rent Stabilization Law (Administrative Code of City of New York § YY511.0 et seq.). Both parties moved for summary judgment based on the following undisputed facts.

On or about January 19, 1974, petitioner’s predecessor entered into a written lease for the subject premises with Bonnie Dry. That lease was most recently extended by a written agreement dated October 6, 1981 for the three-year term from February 1, 1982 through January 31, 1985.

With the knowledge and oral permission of petitioner’s predecessor, Ms. Dry assigned her lease to respondent Green-berg on or about June 24, 1982. At that time, the predecessor landlord increased respondent’s rent by 15%, based on the then effective vacancy allowance established by the Rent Guidelines Board. (See, Rent Guidelines Order No. 13.)

[963]*963When respondent moved into the premises in July, he requested that the apartment be painted. The predecessor landlord readily complied. Since that time, respondent has continuously resided in the apartment, paying the newly calculated rent in his own name.

Petitioner became the owner of the building in March 1984. In April, petitioner registered the premises with the State Division of Housing and Community Renewal (DHCR) as required by the Omnibus Housing Act of 1983 (L 1983, ch 403). On the registration form, petitioner listed respondent Greenberg as the tenant. The designated lease expiration date was that of the lease which Ms. Dry had assigned to respondent. The designated rent included the 15% vacancy allowance that respondent had been paying since he moved in. The form contained no mention of Bonnie Dry or an assignment, even though petitioner was fully aware of the history of the premises.

In February 1985, after the lease expired, respondent filed a complaint with DHCR that petitioner had failed to give him a renewal lease. Respondent continued to tender rent, and petitioner accepted it for the months of February and March 1985. At the end of March, the 30-day notice terminating respondent’s tenancy was served. Petitioner then stopped accepting rent and commenced this holdover proceeding.

In moving for summary judgment, petitioner concedes that he is bound by his predecessor’s consent to the assignment of the lease from Ms. Dry to respondent Greenberg. He argues instead that respondent is now subject to eviction based on the expiration of the lease, because assignees are not entitled to renewal leases. For this argument, he relies solely on Equity Props. Corp. v Bonhomme (124 Misc 2d 784 [App Term, 1st Dept 1984]) and the reasoning and cases cited therein.

Respondent makes various arguments in opposition to petitioner’s motion and in support of his own motion for summary judgment. As detailed more fully below, his main argument is that Equity Props, (supra) is inapposite to the case at bar, and that the common law entitles respondent as assignee to a renewal lease.

This court finds that respondent as an assignee is entitled to a renewal lease. The court reaches this decision after considering the common law regarding assignments, the recent amendment to Real Property Law § 226-b, and the cases cited by both parties.

[964]*964At common law, a tenant "has always had an unrestricted right to sublet or assign at will * * * with restrictions thereon viewed with disfavor by the courts” (Lewis, Greenwald & Kennedy v Vector Real Estate Corp., NYLJ, Nov. 23, 1984, p 4, col 5, p 6, col 1 [Sup Ct, NY County]). When an assignment occurred, the assignor transferred his or her entire interest in the demised premises to the assignee. (Beekman Estate v Hanson, NYLJ, Dec. 5, 1984, p 6, col 2 [App Term, 1st Dept].) The assignee then was in privity of estate with the landlord, and the terms of the relationship were those fixed by the covenants of the lease that ran with the land. (1 Rasch, New York Landlord & Tenant, Summary Proceedings § 217 [2d ed 1971].)

It was further well established under the common law that a covenant in a lease giving the tenant the right to renew is one running with the lease. Therefore, the covenant inured to the benefit of the assignee, entitling him to a renewal lease. (1 Rasch, op. cit.; see also, Matter of 507 Madison Ave. Realty Co. v Martin, 200 App Div 146, 152 [1st Dept], affd 233 NY 683 [1922]; Leibowitz v Bickford’s Lunch Sys., 241 NY 489 [1926]; Bradley v General Store Equip. Corp., 183 Misc 199, 201 [NY Mun Ct], affd 268 App Div 852 [1st Dept 1944]; Loudave Estates v Cross Roads Improvement Co., 28 Misc 2d 54, 55 [Sup Ct, NY County 1961].) Significantly, the right to renew did not extend to a sublessee, but only to an assignee. (Bradley v General Store Equip. Corp., 183 Misc. at p 201.)

In 1975 the Legislature added section 226-b to the Real Property Law. That section, as amended in 1976, provided that any tenant in a building having four or more residential units had the right to sublet or assign his or her lease, provided that the prior written consent of the landlord was obtained. The statute further provided that the landlord’s consent could not be unreasonably withheld; if consent was unreasonably withheld, the landlord then had to release the tenant from the lease upon the tenant’s request. (L 1976, ch 198, § 1.)

This version of section 226-b was interpreted to require the landlord to state his reasons for withholding his consent to a requested sublet or assignment of the lease, or consent would be deemed granted by the court. (See, Conrad v Third Sutton Realty Co., 81 AD2d 50, 55 [1st Dept 1981].) Quite significantly, the assignee in the Equity Props, case which the petitioner herein is relying upon secured the assignment by judicial determination; that is, relying on Conrad, the Civil Court interpreted section 226-b as discussed above to permit [965]*965an automatic assignment when the landlord failed to respond to the tenant’s request for consent. (Equity Props. Corp. v Bonhomme, 109 Misc 2d 760, 763-764 [NY County 1981] [(Equity I].) Even more signficiantly, the Appellate Term, First Department, affirmed the Civil Court’s decision. (111 Misc 2d 999 [1981], supra.)

Apparently unhappy with problems arising under the statute, such as profiteering by tenants who were "selling” their apartments (see, 1 Rasch, op. eit. § 251.1 [Cum Supp]), the Legislature repealed section 226-b and added a new section in 1983. (L 1983, ch 403, § 37.) While not substantially altering the sublet provisions, the new section 226-b wholly eliminated the tenant’s right to assign, stating that the landlord’s consent to an assignment "may be unconditionally withheld without cause” (Real Property Law § 226-b [1]). It further explicitly provided that, in the event consent is unreasonably withheld, the tenant’s "sole remedy” is to be released from the lease (emphasis supplied).

This new statute has been given retroactive effect only in certain instances.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Vance v. Century Apartments Associates
460 N.E.2d 1096 (New York Court of Appeals, 1984)
Leibowitz v. Bickford's Lunch System
150 N.E. 525 (New York Court of Appeals, 1926)
Matter of 507 Madison Ave. Realty Co., Inc. v. . Martin
135 N.E. 969 (New York Court of Appeals, 1922)
507 Madison Avenue Realty Co. v. Martin
200 A.D. 146 (Appellate Division of the Supreme Court of New York, 1922)
Bradley v. General Store Equipment Corp.
268 A.D. 852 (Appellate Division of the Supreme Court of New York, 1944)
Conrad v. Third Sutton Realty Co.
81 A.D.2d 50 (Appellate Division of the Supreme Court of New York, 1981)
Fox v. 85th Estates Co.
100 A.D.2d 797 (Appellate Division of the Supreme Court of New York, 1984)
Blum v. West End Associates
104 A.D.2d 319 (Appellate Division of the Supreme Court of New York, 1984)
Bradley v. General Store Equipment Corp.
183 Misc. 199 (City of New York Municipal Court, 1944)
Loudave Estates, Inc. v. Cross Roads Improvement Co.
28 Misc. 2d 54 (New York Supreme Court, 1961)
Equity Properties Corp. v. Bonhomme
109 Misc. 2d 760 (Civil Court of the City of New York, 1981)
Equity Properties Corp. v. Bonhomme
111 Misc. 2d 999 (Appellate Terms of the Supreme Court of New York, 1981)
Equity Properties Corp. v. Bonhomme
124 Misc. 2d 784 (Appellate Terms of the Supreme Court of New York, 1984)

Cite This Page — Counsel Stack

Bluebook (online)
129 Misc. 2d 962, 494 N.Y.S.2d 815, 1985 N.Y. Misc. LEXIS 2855, Counsel Stack Legal Research, https://law.counselstack.com/opinion/200-prince-realty-v-greenberg-nycivct-1985.