487 Elmwood, Inc. v. Hassett

107 A.D.2d 285, 486 N.Y.S.2d 113, 1985 N.Y. App. Div. LEXIS 48236
CourtAppellate Division of the Supreme Court of the State of New York
DecidedMarch 1, 1985
StatusPublished
Cited by17 cases

This text of 107 A.D.2d 285 (487 Elmwood, Inc. v. Hassett) is published on Counsel Stack Legal Research, covering Appellate Division of the Supreme Court of the State of New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
487 Elmwood, Inc. v. Hassett, 107 A.D.2d 285, 486 N.Y.S.2d 113, 1985 N.Y. App. Div. LEXIS 48236 (N.Y. Ct. App. 1985).

Opinion

[286]*286OPINION OF THE COURT

SCHNEPP, J.

We are concerned on this appeal with the rights of a shopping plaza tenant whose easement to use an area reserved for automobile parking was limited by the erection of an encroaching business structure. Plaintiff, a major tenant in the plaza owned by the defendants William D. Hassett and Leo Townsell, possessed the right under its lease to use the existing plaza parking area in common with the other plaza tenants. On April 24,1978, defendant owners leased approximately two thirds of the parking area to the McDonald defendants (McDonald’s Corporation, McDonald’s of Kensington Ltd. and Franchise Realty Interstate Corp.), who proceeded to demolish the parking lot and construct a McDonald’s restaurant on the site which opened for business on September 12, 1979. The plaintiff commenced this action on or about August 28,1979 and asserted in its complaint causes of action for interference with its right to use the parking lot, trespass, breach of the covenant of quiet enjoyment and partial actual eviction. It sought injunctive relief mandating removal of the restaurant, $50,000 compensatory damages, repayment of all rents paid to the landlords from March 1979, and punitive damages.

After a Bench trial, the court found that plaintiff by reason of its sublease had an easement to use the parking area adjacent to its store in common with other tenants with which the defendant lessors and McDonald’s improperly interfered. The court, however, found that plaintiff was not actually partially evicted since the encroachment of the restaurant did not result in a loss of ingress or egress but only limited the easement by reducing the number of available customer parking spaces. It awarded only nominal damages against the defendants on plaintiff’s claim for breach of the lease agreement and interference with the easement, denied plaintiff’s claim for repayment of rents and dismissed as legally insufficient plaintiff’s causes of action for equitable relief and punitive damages. Plaintiff appeals and defendants cross-appeal from the judgment. The amount of damages is the underlying question raised on plaintiff’s appeal, while defendants’ concern is with the finding that they violated any rights of plaintiff.

In an earlier appeal of this case, we held that plaintiff acquired an easement for the use of the parking area appurtenant to its leasehold and that “[i]f these defendants [McDonald’s] had knowledge of any fact sufficient to put them on inquiry as to the existence of plaintiff’s easement, a cause of action exists against [287]*287them for interference with plaintiff’s right to use the parking area.” (487 Elmwood v Hassett, 83 AD2d 409, 412-413.)

On trial, the proof established that McDonald’s real estate manager was aware of plaintiff’s lease, that he inspected the premises and that he noted its use as a parking area for the plaza, and the court properly found that McDonald’s “had sufficient constructive notice of the possible existence of Plaintiff’s easement necessitating a duty to make further inquiry; that Defendants mcdonald failed to make that inquiry and have improperly interfered with Plaintiff’s right to use the parking area”. Thus, the McDonald defendants are liable for interfering with plaintiff’s easement which was appurtenant to its leasehold. Defendant lessors are also liable because they knowingly breached the lease, interfered with plaintiff’s easement and in our view partially evicted plaintiff from its leasehold.

“An actual eviction occurs only when the landlord wrongfully ousts the tenant from physical possession of the leased premises. There must be a physical expulsion or exclusion * * * And where the tenant is ousted from a portion of the demised premises, the eviction is actual, even if only partial” (Barash v Pennsylvania Term. Real Estate Corp., 26 NY2d 77, 82-83). Defendant lessors argue that plaintiff could not be evicted from the parking area since the parking lot was not part of the demised premises, i.e., plaintiff did not acquire a right of possession but obtained only an easement. The trial court rejected this argument, but held that defendants’ interference with plaintiff’s easement would only rise to the level of an actual eviction if it resulted in a loss of ingress or egress to plaintiff’s business.

While there is no question that depriving a tenant of the use of an easement controlling ingress and egress to the demised premises amounts to a partial actual eviction (2 Rasch, New York Landlord and Tenant, Summary Proceedings § 914 [2d e.d]), an actual eviction can also result from interference with other appurtenant rights. Thus, depriving the tenant of the use of a hallway lavatory (524 W. End Ave. v Rawak, 125 Misc 862), or access to the use of a freight elevator (Broadway-Spring St. Corp. v Berens Export Corp., 12 Misc 2d 460), or merely changing or limiting the means of ingress and egress without denying access to the leased premises (Seigel v Neary, 38 Misc 297; Hamilton v Graybill, 19 Misc 521) can amount to an actual eviction from a substantial portion of the premises.

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Bluebook (online)
107 A.D.2d 285, 486 N.Y.S.2d 113, 1985 N.Y. App. Div. LEXIS 48236, Counsel Stack Legal Research, https://law.counselstack.com/opinion/487-elmwood-inc-v-hassett-nyappdiv-1985.