City of New York v. Heller

127 Misc. 2d 814, 487 N.Y.S.2d 288, 1985 N.Y. Misc. LEXIS 2743
CourtCivil Court of the City of New York
DecidedMarch 15, 1985
StatusPublished
Cited by3 cases

This text of 127 Misc. 2d 814 (City of New York v. Heller) 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
City of New York v. Heller, 127 Misc. 2d 814, 487 N.Y.S.2d 288, 1985 N.Y. Misc. LEXIS 2743 (N.Y. Super. Ct. 1985).

Opinion

OPINION OF THE COURT

Robert D. Lippmann, J.

The issues presented by the facts of this case are whether an oral agreement for a tenancy measured by the tenant’s lifetime entered into with a representative of the City of New York is valid under the Statute of Frauds, and if valid, whether binding on the city, and if binding on the city, to what durational extent and with what effect on the city’s legal capacity to institute the instant summary holdover proceeding.

Since 1940 respondent Jacob Heller has occupied premises used as law offices at 51 Chamber Street, New York City. Until 1965 the building was owned by the Emigrant Industrial Savings Bank. In 1965 New York City acquired title to the building in a condemnation proceeding. From 1965 to 1980 Mr. Heller was a month-to-month tenant.

In 1969 the city sought possession of the premises and an order of eviction against all occupants of 51 Chamber Street. The matter came before Justice Geller in the Supreme Court in a proceeding to which respondent was a party. In his decision of [815]*815February 6, 1969, Justice Geller awarded possession to the city with a stay of the order subject to an allocation from the capital budget of funds for a new civic center, the purpose for which the condemnation proceeding had been initiated. The project was abandoned because of the city’s fiscal crisis. To date funds for the project have not been allocated.

Pursuant to Justice Geller’s order, continued possession by the occupants of the premises during the stay was to be on the same terms then existing, with the occupants to pay the city for use and occupancy. Upon default of such payment, the city could institute summary proceedings for nonpayment of rent in the Civil Court.

In July 1980, Mr. Heller (and his brother Joseph, now deceased) and George Croucher, then Director of the Bureau of Property Management, Division of Real Property of the City of New York, entered into an oral agreement by which terms respondent agreed to relinquish suite 1409 on condition the monthly rent for suite 1425, the premises here at issue, remain at $201 and that the term of the tenancy last until both Joseph and Jacob Heller die. As a result of this agreement, respondent removed all its storage and filing cabinets, copying machine, records and files from suite 1409 into suite 1425, whose total personal usable space was as a consequence considerably diminished.

Matters remained this way until May 1984 when petitioner served a 30-day notice of termination effective June 30, 1984 upon respondent. Upon his failure to vacate, this holdover proceeding was commenced.

Petitioner asserts that respondent is a month-to-month tenant and since he refused the rental increase proposed by petitioner, this proceeding for possession is proper. To respondent’s defense that his tenancy is protected by an oral lease, petitioner raises the barrier of the Statute of Frauds as well as the lack of authority of Mr. Croucher to bind the city by his acts.

Respondent also claims he is protected by Justice Geller’s order which provided that during the stay the occupants of 51 Chamber Street are to remain in possession under the terms existing in 1969.

THE STATUTE OF FRAUDS

General Obligations Law § 5-701 states:

“a. Every agreement, promise or undertaking is void, unless it or some note or memorandum thereof be in writing, and sub[816]*816scribed by the party to be charged therewith, or by his lawful agent, of such agreement, promise or undertaking:

“1. By its terms is not to be performed within one year from the making thereof or the performance of which is not to be completed before the end of a lifetime”.

Section 5-703 (2) states: “A contract for the leasing for a longer period than one year, or for the sale, of any real property, or an interest therein, is void unless the contract or some note or memorandum thereof, expressing the consideration, is in writing, subscribed by the party to be charged, or by his lawful agent thereunto authorized by writing.”

The statutory language makes clear that a writing is required where performance is for longer than one year. However, where a contract is capable of being performed within a year, it does not fall within the strictures of section 5-701 (a) (1). (Ken Wire & Metal Prods. v Columbia Broadcasting Sys., 338 F Supp 624; Tradeways Inc. v Chrysler Corp., 342 F2d 350 [2d Cir 1965], cert denied 382 US 832.) The controlling words here are “capable of”. Thus even if performance extends beyond a year, if it was capable of performance within a year measured from the date of the agreement, the Statute of Frauds does not require a writing. Similarly, where an oral lease could be construed to be for a period less than a year, it does not fall within section 5-703 (2). (Pier v Margulies, 73 NYS2d 309 [Sup Ct, Kings County 1947].)

In determining whether the oral contract is within the prohibition of the Statute of Frauds, it is the endurance of the defendant’s liability, not the plaintiff’s, that is the deciding factor. (Angileri v Vivanco, 139 NYS2d 728, 730 [Sup Ct, NY County 1955]; Archer v Hamilton Wright Org., 155 NYS2d 556 [Sup Ct, Nassau County 1956].) In the case before me, respondent is an individual whose lifetime is finite and capable of enduring less than a year. I note in passing, though it is not legally pertinent, that respondent was 76 years old in 1980 when the oral agreement was made. Respondent has no liability under the agreement that reaches beyond his lifetime. A lifetime can be shorter than a year. Hence, this lease was capable of performance within one year of the making of the agreement. Where a contract can be so construed, it is free of the requirement set out by General Obligations Law §§ 5-701 (a) (1) and 5-703 (2).

Accordingly, the oral agreement between respondent and George Croucher is not invalid for failure of being reduced to a writing.

[817]*817IS THE AGREEMENT BINDING UPON THE CITY?

Petitioner argues that an oral agreement by an employee of the city is not binding upon the city.

As Director of Property Management, Division of Real Property of the City of New York, George Croucher was not a mere employee but one in authority, apparent or real, to manage the real property of the city. There is no way to deal with the city but through its agents, simply because there is no other way to deal with a municipal entity.

Relying upon Seif v City of Long Beach (286 NY 382 [1941]), as authority, petitioner states that the doctrine of apparent authority may not be relied upon when dealing with a municipality. My reading of Seif leads me to understand that central to its holding was not the issue of apparent authority but rather the issue of ratification. And ratification is the issue before me. The Set/case dealt with services rendered by an attorney retained by the Mayor of Long Beach in contravention of the charter of the city which contained no provision conferring authority upon the Mayor to retain special counsel to represent the city in litigation. The Seif court held: “Ratification by a municipal corporation, like ratification by a private corporation or by an individual, ‘may be by express assent, or by acts or conduct of the principal, inconsistent with any other supposition than that he intended to adopt and own the act done in his name’ ” (286 NY, at pp 386-387, citing

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Bluebook (online)
127 Misc. 2d 814, 487 N.Y.S.2d 288, 1985 N.Y. Misc. LEXIS 2743, Counsel Stack Legal Research, https://law.counselstack.com/opinion/city-of-new-york-v-heller-nycivct-1985.