56-70 58th Street Holding Corp. v. Fedders-Quigan Corp.

159 N.E.2d 150, 5 N.Y.2d 557, 186 N.Y.S.2d 583, 1959 N.Y. LEXIS 1395
CourtNew York Court of Appeals
DecidedApril 17, 1959
StatusPublished
Cited by17 cases

This text of 159 N.E.2d 150 (56-70 58th Street Holding Corp. v. Fedders-Quigan Corp.) is published on Counsel Stack Legal Research, covering New York Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
56-70 58th Street Holding Corp. v. Fedders-Quigan Corp., 159 N.E.2d 150, 5 N.Y.2d 557, 186 N.Y.S.2d 583, 1959 N.Y. LEXIS 1395 (N.Y. 1959).

Opinions

Froessel, J.

On March 1, 1953 the parties entered into a written lease whereby the tenant rented the basement and first floor of a building owned by the landlord for a period of two years at an annual rental of $18,000, payable in monthly installments of $1,500. The lease stated that the premises were “ to be used and occupied by the Tenant for warehousing and shipping of its goods ”, although it nowhere designated the nature and type of those ‘ ‘ goods ”. Paragraph 39 of the lease obligated the landlord to make specified alterations and improvements in the premises ‘ ‘ with reasonable promptness after the execution of this lease ”, including concreting the basement floor, driveway and certain retaining walls, reconstructing and repairing the existing loading platform and cutting new openings for 8-foot doors. It made these promptly for the accommodation of the tenant.

The certificate of occupancy then in effect permitted the first floor of the leased premises to be used as a dance hall; the alteration application later made to and approved by the Department of Housing and Buildings showed the existing legal use of the basement to be “ Boiler Em & Storage ”. Notwithstanding the fact that, under section 026-185.0 of the Administrative Code of the City of New York, it was unlawful to make any changes of occupancy or use of any structure if such change is inconsistent with the last issued certificate of occupancy ”, the tenant, who “ couldn’t wait ”, immediately entered into possession.

In paragraph 43 of the lease, the landlord covenanted to “ make such application as may be necessary” to obtain a certificate of occupancy authorizing the use of the demised premises for warehousing and shipping. No time was fixed for [560]*560performance of this covenant, but paragraph 48 of the lease provided that if a certificate were refused by the Department of Housing and Buildings, “ after the landlord has exhausted all remedies to compel [its] issuance ”, the tenant could vacate the premises within 60 days after notice from the landlord, and the lease would be at an end.

Before a new certificate of occupancy will issue for an altered building whose use is to be changed, plans must be submitted to and approved by the Building Superintendent, pursuant to section C26-161.0 of the Administrative Code, and the. alterations effected in accordance with the approved plans (§§ C26-187.0, C26-188.0). Accordingly, the landlord promptly retained an architect, plans were drawn up and approved, and, as noted, all the alterations specified in paragraph 39 of the lease were completed. Various alleged difficulties then ensued, including the illness and death of the architect and the filing of amendments to the approved plans by a new architect, and at the expiration of 14 months a new certificate had still not been issued. During this entire period, however, no violations were placed against the premises by any official agency, and the tenant made full use of them for the purposes specified in the lease.

Despite the fact that its possession was wholly undisturbed, the tenant, by letter dated April 27, 1954, informed the landlord that if a new certificate of occupancy was not forthcoming by June 30th it would deem the lease terminated, vacate the premises and cease paying rent. The landlord then contacted the Building Department and a building inspector visited the premises in the middle of June. On June 25th, five days before the deadline set by the tenant, the Building Department notified the landlord that approval of his application for a new certificate was being ‘ ‘ held up ’ ’ because of the storage of combustibles on the premises. The landlord’s application had stated that incombustible materials were being stored, and it was informed that the application would have to be amended or the combustibles removed.

Although the tenant adduced evidence that it had always stored combustibles on the premises, the landlord’s manager claimed that all he had ever seen were assembly line parts, and that from May on the tenant was storing “ less and less In [561]*561any event, the landlord’s manager visited the premises on June 25th or 26th and found that they were completely empty, with the exception of two dollies with paint cans on them and one barrel of salvarasaul, used for diluting paint. Application was immediately made to the Fire Department for permission to store combustibles (New York City Charter, § 646, subd. e), and the landlord was assured that it would be approved as quickly as possible.

The following day, however, the landlord’s manager returned .to the premises and found that the combustibles had been removed, thus leaving the premises entirely vacant. The application filed with the Fire Department was hence withdrawn, and a new certificate of occupancy, authorizing the use of the first floor as well as the basement for storage and shipping, was duly issued on July 8th. It was thus established that the premises were in such condition before June 30th as to entitle the landlord to a certificate of occupancy at that time. No rent was paid by the tenant after July 1st.

In awarding judgment 1o the landlord for rent due for the balance of the lease term, the trial court ruled in part that the tenant ‘ ‘ could not simply vacate the premises in cavalier fashion * * * on the pretext that further occupancy was illegal ’ ’. The Appellate Division reversed, by a divided court, on the ground that ‘ ‘ the covenants to obtain the certificate and to pay the rent were dependent. The landlord, having failed to perform that condition of the lease upon its part, may not recover the rent reserved ”. The question posed is whether the landlord’s failure to obtain the new certificate of occupancy by June 30th justified the tenant in vacating the premises.

We agree with the trial court that, “under all the circumstances herein disclosed ”, the tenant’s removal was not justified. The lease itself was not void for illegality merely because the use of part of the premises for warehousing and shipping was not authorized under the then existing certificate of occupancy. As the court noted in Elkar Realty Cory. v. Kamada (6 A D 2d 155, 157), the lease “contemplated a correct and hence a lawfully occupied premises ” and “ the bar to legal use was * * * readily corrective ’’ (see, also, Minton v. Schulte, Inc., 153 Misc. 195; Mesfree Realty Cory. v. Huyler’s, 153 Misc. 667). The tenant knew, when it signed the lease and [562]*562immediately entered into possession, that plans had to be drawn and approved and the specified alterations completed before a new certificate would issue. By providing that the landlord was to be afforded the opportunity to “ exhaust all remedies ” to obtain the certificate, the lease, in practical effect, fixed such event as the period for performance. The landlord had admittedly not exhausted his remedies and, in light of the fact that the tenant’s possession and use of the premises were wholly undisturbed, we do not think the tenant was justified in moving therefrom.

Moreover, a certificate authorizing the use of the entire leased premises for storage and shipping would have been issued by the date specified had it not been for the tenant’s storage of combustibles. The tenant claims this would have been no performance at all, since the lease authorized it to store its “goods”, that those “goods” included paints and thinners, and the certificate issued one week later did not authorize the storage of such combustibles.

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56-70 58th Street Holding Corp. v. Fedders-Quigan Corp.
159 N.E.2d 150 (New York Court of Appeals, 1959)

Cite This Page — Counsel Stack

Bluebook (online)
159 N.E.2d 150, 5 N.Y.2d 557, 186 N.Y.S.2d 583, 1959 N.Y. LEXIS 1395, Counsel Stack Legal Research, https://law.counselstack.com/opinion/56-70-58th-street-holding-corp-v-fedders-quigan-corp-ny-1959.