7 West 21 LI LLC v. Mosseri

District Court, S.D. New York·Decided November 4, 2022·No. 1:20-cv-00279·Unknown

Opinion

UNITED STATES DISTRICT COURT SOUTHERN DISTRICT OF NEW YORK ---------------------------------------------------------------------- X : 7 WEST 21 LI LLC, : : Petitioner, : : 20 Civ. 279 (JPC) -v- : : OPINION CLEMENT MOSSERI, : AND ORDER : Respondent. : : ---------------------------------------------------------------------- X

JOHN P. CRONAN, United States District Judge: This summary proceeding to recover possession of real property was commenced by Petitioner 7 West 21 LI LLC (“Petitioner”) in New York City Civil Court, County of New York, Housing Part F. Dkt. 52 (“Chancas Declaration”) ¶ 4. Petitioner, the owner and landlord of Apartment #1708, 7 West 21st Street, New York, New York 10010 (the “Premises”), seeks to recover possession of the Premises from Respondent Clement Mosseri, the tenant to whom the Premises had been rented. See Chancas Declaration, Exh. A at 6-9 (“Petition”). Petitioner further seeks money damages for rent due and for the fair value of use and occupancy during the period after the alleged termination of Mosseri’s lease. Id. On January 13, 2020, Mosseri removed this proceeding to federal court, alleging it to fall within this Court’s subject matter jurisdiction because it raises a federal question. Dkt. 2 (“Notice of Removal”) ¶ 1. Petitioner now moves to remand the case to state court on the grounds that this Court lacks subject matter jurisdiction. Dkt. 51.1

1 Petitioner previously moved to remand on the grounds that Mosseri’s removal to federal court was untimely. See Dkt. 37. On July 18, 2021, the Court denied that motion, but noted its “serious concern as to whether it has subject matter jurisdiction to adjudicate this dispute.” Dkt. 43 at 10; see Valentin v. Dollar Tree Stores, Inc., No. 21 Civ. 3647 (MKV), 2021 WL 2852039, at *1 (S.D.N.Y. July 8, 2021) (“[F]ailure of subject matter jurisdiction is not waivable and may be raised at any time by a party or by the court sua sponte.” (alteration in original) (quoting For the reasons that follow, the Court agrees that it lacks subject matter jurisdiction over this proceeding and therefore remands it to New York City Civil Court, County of New York, Housing Part. I. Discussion Mosseri cites 28 U.S.C. § 1331 as the basis for this Court’s jurisdiction. Notice of Removal

¶ 1. Under that provision, “[t]he district courts shall have original jurisdiction of all civil actions arising under the Constitution, laws, or treaties of the United States.” 28 U.S.C. § 1331. As the Supreme Court has explained, section 1331 grants a district court jurisdiction over only “those cases in which a well-pleaded complaint establishes either that federal law creates the cause of action or that the plaintiff’s right to relief necessarily depends on resolution of a substantial question of federal law.” Franchise Tax Bd. v. Constr. Laborers Vacation Tr. of S. Cal., 463 U.S. 1, 27-28 (1983). The propriety of Mosseri’s removal of this proceeding to this Court depends on whether it satisfies either of the two conditions set forth in Franchise Tax Board. The Court must therefore remand for lack of jurisdiction unless either the Petition is brought under a cause of action

created by federal law or a substantial question of federal law must necessarily be resolved to decide whether Petitioner is entitled to the relief sought in the Petition. A. Federal Cause of Action The proceeding clearly fails to meet the first of these two conditions. Through the Petition, Petitioner brings a summary proceeding to recover possession of real property from a holdover tenant. See Petition, Dkt. 52-1 at 6-9; see also Chancas Declaration ¶ 4. That cause of action is created by New York law, not by federal law. See generally N.Y. Real Prop. Acts. Law art. 7.

Lyndonville Sav. Bank & Tr. Co. v. Lussier, 211 F.3d 697, 700 (2d Cir. 2000))). The instant motion to remand for lack of subject matter jurisdiction followed. Among other matters, Article 7 of the New York Real Property Actions and Proceedings Law, titled “Summary Proceeding to Recover Possession of Real Property,” sets forth the courts in which jurisdiction exists for such proceedings to be maintained, id. § 701(1); the appropriate venue for such proceedings to be brought, id. § 701(2); the category of case into which such proceedings fall, id. § 711; the information that must be included in petitions commencing such proceedings,

id. § 741; the elements that must be proven to maintain such proceedings, id. § 711(1); the procedures by which any triable issues of fact must be resolved, id. § 745; the nature of the final judgment to be entered in such proceedings, id. §747; and the procedures for issuing and executing warrants to evict the tenant in possession of property at the conclusion of such proceedings, id. § 749. Consequently, a provision of New York law, not federal law, creates the cause of action under which the Petition proceeds: “A special proceeding may be maintained under this article . . . [if] the tenant continues in possession of any portion of the premises after the expiration of his term, without the permission of the landlord . . . .” Id. § 711(1). Furthermore, a summary proceeding under Article 7 encompasses all forms of relief sought in the Petition, not merely the

recovery of possession itself. See id. § 741(5) (providing that a petition may seek money damages in addition to seeking possession of the property in dispute). Thus, because the Petition is brought under a cause of action created by New York law, it cannot present a federal question as a cause of action created by federal law. B. Necessary Federal Issue Even a cause of action created by state law may present a federal question, however, if the state-law claims “implicate significant federal issues.” Grable & Sons Metal Prods., Inc. v. Darue Eng’g & Mfg., 545 U.S. 308, 312 (2005). For a state-law claim to implicate significant federal issues, “the question is, does a state-law claim necessarily raise a stated federal issue, actually disputed and substantial, which a federal forum may entertain without disturbing any congressionally approved balance of federal and state judicial responsibilities.” Id. at 314. For reasons that follow, because proving facts that would entitle Petitioner to relief would not “necessarily raise a stated federal issue,” id., the Court cannot exercise jurisdiction over this proceeding on the grounds that the Petition “implicate[s] significant federal issues,” id. at 312.

As noted, the New York Real Property Actions and Proceedings Law permits the maintenance of a summary proceeding to recover possession of real property if “the tenant continues in possession of any portion of the premises after the expiration of his term, without the permission of the landlord.” N.Y. Real Prop. Acts. Law § 711(1). Thus, to prevail in the summary proceeding, Petitioner must prove that Mosseri is its tenant, that his tenancy has expired, and that he remains in possession of the Premises without Petitioner’s permission. See Perrotta v. W. Reg’l Off-Track Betting Corp., 469 N.Y.S.2d 504, 505 (App. Div. 1983) (“To maintain a summary holdover proceeding a landlord must allege and prove that, as of the time the proceeding is commenced, the tenant remains in possession beyond the expiration of his term.”); LaManna v.

DiDonato, 842 N.Y.S.2d 674, 675 (App.

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