Allied Graphic Arts, Inc. v. Berkwit

7 Misc. 2d 777, 165 N.Y.S.2d 815, 1957 N.Y. Misc. LEXIS 2637
CourtCity of New York Municipal Court
DecidedAugust 7, 1957
StatusPublished
Cited by1 cases

This text of 7 Misc. 2d 777 (Allied Graphic Arts, Inc. v. Berkwit) is published on Counsel Stack Legal Research, covering City of New York Municipal Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Allied Graphic Arts, Inc. v. Berkwit, 7 Misc. 2d 777, 165 N.Y.S.2d 815, 1957 N.Y. Misc. LEXIS 2637 (N.Y. Super. Ct. 1957).

Opinion

Maurice Wahl, J.

The petitioner, a lessee-landlord of a five-year lease, the term commencing on June 1, 1957, brings these proceedings to oust the tenant from rooms 817 and 818 in the [778]*778building at 551 Fifth Avenue, New York City. The tenant is a statutory tenant and has occupied the space for many years. The petitioner landlord occupies other space in the building and in the petition alleges that it “ seeks in good faith to obtain possession of such business space for its own immediate and personal use.”

The petitioner relies upon a new amendment (par. [2-a]) to subdivision (d) of section 8 of the Commercial and Business Rent Laws (L. 1945, chs. 3, 314, as amd. by L. 1957, chs. 452, 453) as a basis for the relief sought. This paragraph authorizes possession of space where: Possession is sought by a person who is the lessee or sub-lessee under a lease for a term of five years or more who seeks in good faith to obtain possession of the commercial [business] space for his immediate and personal use, or possession is sought by such lessee or sub-lessee to give possession to another person who is a subsidiary corporation at least ninety per centum of whose stock is owned by such lessee or sub-lessee, and such lessee or sub-lessee seeks in good faith to recover possession of the commercial [business] space for the immediate and personal use of such subsidiary corporation ”.

It is contended by the tenant that the petitioner has failed to prove sufficient facts to authorize possession to it under this new subdivision. The tenant maintains that in enacting this new paragraph it was the intention of the Legislature that it was to apply to leases in existence for a period of five years or more, at the time of the enactment of the legislation and not to leases made subsequent to its enactment.

The petitioner contends that the language is sufficiently unambiguous to justify the eviction of the tenant.

To give to this new paragraph the construction urged by the landlord would for all practical purposes put an end to rent control of commercial and business space. The end of rent control was not contemplated or intended by the enactment of this paragraph for the Legislature did extend the statutes for another year until July 1, 1958 (L. 1957, chs. 452, 453). (See Fischel v. Steel Management Co., 286 App. Div. 780; Olympic Assets v. Hatch & Co., 1 Misc 2d 653 [App. Term, First Dept., 1956], affg. a decision of this court, 208 Misc. 12.)

In the Fischel case cited above in construing subdivision (g) of section 8 of the act the court said (p. 782): “ To interpret the statute in accordance with defendant’s contention would necessarily result in decontrol of business commercial space to an extent which the Legislature did not intend to accomplish in 1949 when it adopted subdivision (g) of section 8.”

[779]*779In the Hatch case cited above, Justice Edeb of the Appellate Term, in referring to subdivision (g) of section 8 of the act and the quit and surrender ” clauses in leases, said (pp. 654-655): “ All business and commercial tenants having at any time had leases containing such a clause would under such an interpretation be vulnerable to a ‘ pincer ’ attack by landlords invoking subdivisions (e) and (g) of section 8 against them, whether they refused to sign or did sign renewal leases after the effective date of subdivision (g). The Legislature could not have intended by such a devious method to decontrol business and commercial space, and such an interpretation should not be read into subdivision (g) by the courts in the absence of specific statutory language that a lease containing the formal surrender clause constitutes an agreement ‘ to terminate his occupancy of the premises on a date certain in the future Such a holding, rendering tenants helpless to protect their statutory rights, would run counter to the evident intendment of the legislative commission on the rent laws which, when recommending in 1951 a change in subdivision (g), referred to ‘ agreements to vacate on a date certain ’ being ‘ safeguarded by requirement that these agreements had to be executed not less than three months after the commencement of the term of the lease It would be quite anomalous to protect tenants in possession under unexpired leases against their own improvidence in agreeing within this three-month period of immunity to vacate before or after the expiration of their leases, while at the same time leaving defenseless tenants in possession under expired leases faced with demands by their landlords to execute renewal leases. Were landlords’ interpretation to be upheld, there would be no safeguard ’ left for tenants.”

In fact this court in Olympic Assets v. Hatch & Co. (208 Misc. 12, 15, supra) had occasion to make an observation which is pertinent herein: “ It is necessary to remember that in applying rules of statutory construction, we must avoid interpretations which may reach an illogic never intended by the Legislature. ’ ’

The general rule of construction of statutes that when the language of the statute is clear that the courts must give the language its plain meaning is not applicable here for the new paragraph is clearly ambiguous when read in with the other subdivisions of section 8.

The legislative report on the new paragraph clearly proves its ambiguity. This report (1957 Report of Commission to Study Rents and Rental Conditions) with respect to this section provides as follows: “ To confer upon a lessee of business or [780]*780commercial space the rights of an owner of the building where, in good faith, the lessee requires additional space occupied by a statutory tenant within the same building. (Business Law, § 8, Subd. d, Paragraph 2-a; Commercial Law, § 8, Subd. d, Paragraph 2-a.) ”

Though the report adds more confusion as to the meaning of the paragraph, it does, however, indicate that it was the committee’s intention to limit and restrict the application of this new provision in section 8.

The legislative history of the law and the amendments thereto should be considered to determine the meaning of the new paragraph incorporated into the law this year. The new matter becomes an integral part of the statute but does not supersede the existing provisions which are still part and parcel of the law. The entire law is therefor to be viewed as a composite entity in order to arrive at the meaning of the new section. (Matter of Greenberg, 141 Misc. 874, affd. 236 App. Div. 733, affd. 261 N. Y. 474; Matter of Bashford, 178 Misc. 951.)

“ The courts will not impute to the lawmakers a futile intent or read into a statute a limitation which would render it futile.” (Matter of Bashford, supra, p. 955.)

To apply the landlord’s interpretation to the new paragraph would render nugatory the requirements of paragraph (2) of subdivision (d); and subdivisions (k), (kk), (h), and (m) of section 8. Moreover, it would make it possible for an owner to circumvent the equity requirements under paragraph (1) of subdivision (d) where he seeks possession by merely giving to his corporate business entity a five-year lease. It appears to this court that such a result was never intended by the Legislature or it would have repealed the subdivisions referred to.

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10 Misc. 2d 198 (City of New York Municipal Court, 1957)

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Bluebook (online)
7 Misc. 2d 777, 165 N.Y.S.2d 815, 1957 N.Y. Misc. LEXIS 2637, Counsel Stack Legal Research, https://law.counselstack.com/opinion/allied-graphic-arts-inc-v-berkwit-nynyccityct-1957.