313 West 100th Street Tenants Ass'n v. Kepasi Realty Corp.

139 Misc. 2d 57, 526 N.Y.S.2d 748, 1988 N.Y. Misc. LEXIS 67
CourtCivil Court of the City of New York
DecidedMarch 24, 1988
StatusPublished
Cited by2 cases

This text of 139 Misc. 2d 57 (313 West 100th Street Tenants Ass'n v. Kepasi Realty Corp.) 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
313 West 100th Street Tenants Ass'n v. Kepasi Realty Corp., 139 Misc. 2d 57, 526 N.Y.S.2d 748, 1988 N.Y. Misc. LEXIS 67 (N.Y. Super. Ct. 1988).

Opinion

OPINION OF THE COURT

Lewis R. Friedman, J.

The enactment of Real Property Law § 234 in 1966 (L 1966, [58]*58ch 286) engendered a substantial change in New York law. The legislation created an unusual hybrid — a contract right to recover attorneys’ fees is implied by statute. The law provides: "Whenever a lease of residential property shall provide that in any action or summary proceeding the landlord may recover attorneys’ fees and/or expenses incurred as the result of the failure of the tenant to perform any covenant or agreement contained in such lease * * * there shall be implied in such lease a covenant by the landlord to pay to the tenant the reasonable attorneys’ fees and/or expenses incurred by the tenant as the result of the failure of the landlord to perform any covenant or agreement on its part to be performed under the lease”.

Previous decisions have analyzed that statute to require (1) that there be a "triggering” lease provision giving the landlord the right to recover legal fees for a breach of the lease and (2) that the tenant be successful either in proving the failure of the landlord to perform a covenant under the lease or in defending a proceeding brought by the landlord (Greco v GSL Enters., 137 Misc 2d 714).

The leases of the tenants in this proceeding were received in evidence. Four of the leases are on the 1981 and 1982 standard form of apartment lease printed by the Real Estate Board of New York, Inc. This court has previously held that paragraph 20 (a) (5) of that form is sufficient to "trigger” a tenant’s rights under Real Property Law § 234 (Greco v GSL Enters., supra). Although those leases also provide the tenants an explicit contract right to recover attorneys’ fees, the statutory right of recovery may not be reduced by the lease. "Any waiver of this section shall be void as against public policy” (Real Property Law § 234).

The 1967 lease of Alan Flacks, a rent-controlled tenant, gives the landlord the right, upon eviction, to "relet said premises * * * and out of any rent so collected or received Landlord shall first pay to itself * * * reasonable attorneys’ fees * * * Should any rent so collected by Landlord after the payment be insufficient to fully pay to Landlord the sum equal to the rent stipulated for herein, the balance shall be paid by Tenant.” Attorneys’ fees clauses continue into statutory tenancy even if the lease was executed prior to the enactment of Real Property Law § 234 (College Props, v Bruce, 122 Misc 2d 766 [App Term, 1st Dept], affd 104 AD2d 1063). Plainly, the lease clause is sufficient to trigger the tenant’s rights under [59]*59Real Property Law § 234 since it applies if the tenant breaches the lease.

By contrast, the Tenants Association and Ms. Klum are not tenants entitled to collect attorneys’ fees under the lease (Nesbitt v New York City Conciliation & Appeals Bd., 121 Misc 2d 336, 338). Neither is a tenant under a lease with a "triggering” clause. Rights under Real Property Law § 234 are limited to actual tenants with appropriate lease clauses.

"[T]he obvious intent of the Legislature to balance * * * the standard attorney’s fee provision contained in the standard form lease” (College Props, v Bruce, supra, 122 Misc 2d, at 768) clearly establishes the applicability of Real Property Law 234 to proceedings under the Housing Maintenance Code (Administrative Code of City of New York § 27-2001 et seq. [HMC]) to obtain repairs. There is an implied covenant in every residential lease that the premises "and all areas used in connection therewith in common with other tenants or residents are fit for human habitation * * * and that the occupants of such premises shall not be subjected to any conditions which would be dangerous, hazardous or detrimental to their life, health or safety” (Real Property Law § 235-b [1]). "Owner agrees that the Apartment ánd the Building are fit for human habitation and that there will be no conditions which will be detrimental to life, health or safety” was an express warranty in four of the leases in this proceeding.

In the instant proceeding, the court after trial granted an application by the petitioning tenants, pursuant to HMC § 27-2115 (h), (i), to direct the owner to remove "conditions constituting violations” from the building. The current application is brought by the tenants, pursuant to Real Property Law § 234, for attorneys’ fees resulting from the injunction proceeding. The reported cases have discussed the application of Real Property Law § 234 in nonprimary residence proceedings (Cier Indus. Co. v Hessen, 136 AD2d 145), actions for abatements resulting from breaches of the warranty of habitability (e.g., Sutton 56 Co. v Garrison, NYLJ, July 2, 1986, at 6, col 1 [App Term, 1st Dept]), and proceedings under RPAPL article 7-A (Greco v GSL Enters., supra). However, they have not discussed its application to injunctive proceedings brought under the Housing Maintenance Code to remove violations.

The law divides violations of the Multiple Dwelling Law, HMC and other statutes into three hazard classes. "Such classification shall be based on the effect of the violation upon [60]*60the life, health or safety of the occupants of the building and upon the public” (Administrative Code § 27-2115 [d]; Maresca v 167 Bleecker, 121 Misc 2d 846, 850). The conditions here involved class C (immediately hazardous) and class B (hazardous) violations, ranging from a lack of adequate hot water and water pressure to infestations of mice and vermin. The court’s order to correct those conditions is based on the finding that the conditions existed (see, Rosenthal v Helfer, 136 Misc 2d 9).

The existence of "hazardous” and "immediately hazardous” violations establishes "conditions which would be dangerous, hazardous or detrimental to [the tenants’] life, health or safety” (Real Property Law § 235-b [1]); they are, without doubt, breaches of the implied warranty. Therefore, they constitute a "failure of the landlord to perform any covenant or agreement on its part to be performed under the lease” (Real Property Law § 234). It follows that a successful proceeding under HMC § 27-2115 (h) is, of necessity, one brought by a tenant as a result of the breach of the warranty of habitability; therefore, the tenant may properly invoke Real Property Law § 234. "[W]here the statutory language is clear and unambiguous, the court should construe the statute to give effect' to the plain meaning of the words used” (Eaton v New York City Conciliation & Appeals Bd., 56 NY2d 340, 345; Bender v Jamaica Hosp., 40 NY2d 560, 562).

The respondent argues that there is no obligation to pay any attorneys’ fees because the agreement between the tenants and the attorney is contingent; that is, it argues that there are no fees "incurred” within the meaning of Real Property Law § 234. Moreover, the term "incurred” has been interpreted " '[t]o have liabilities cast upon one by act’ ” (Manor Mgt. Assocs. v Deutsch, 126 Misc 2d 1006, 1008). There the court held that as soon as the tenants consulted their attorney liability ensued; legal fees were "incurred” (see also, Scotia Assocs. v Bond, 126 Misc 2d 885, 886). The Court of Appeals has analogously held that medical expenses were "incurred” even when they were paid by someone other than the recipient. (Rubin v Empire Mut. Ins. Co., 25 NY2d 426.) The oral retainer agreement in this case provided that the attorneys would be paid an amount to be awarded by the court under Real Property Law § 234.

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Bluebook (online)
139 Misc. 2d 57, 526 N.Y.S.2d 748, 1988 N.Y. Misc. LEXIS 67, Counsel Stack Legal Research, https://law.counselstack.com/opinion/313-west-100th-street-tenants-assn-v-kepasi-realty-corp-nycivct-1988.