City of New York v. Heritage Health & Hous., Inc.

2025 NY Slip Op 31022(U)
CourtNew York Supreme Court, New York County
DecidedMarch 31, 2025
DocketIndex No. 451964/2023
StatusUnpublished

This text of 2025 NY Slip Op 31022(U) (City of New York v. Heritage Health & Hous., Inc.) is published on Counsel Stack Legal Research, covering New York Supreme Court, New York County 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. Heritage Health & Hous., Inc., 2025 NY Slip Op 31022(U) (N.Y. Super. Ct. 2025).

Opinion

City of New York v Heritage Health & Hous., Inc. 2025 NY Slip Op 31022(U) March 31, 2025 Supreme Court, New York County Docket Number: Index No. 451964/2023 Judge: Jeanine R. Johnson Cases posted with a "30000" identifier, i.e., 2013 NY Slip Op 30001(U), are republished from various New York State and local government sources, including the New York State Unified Court System's eCourts Service. This opinion is uncorrected and not selected for official publication. FILED: NEW YORK COUNTY CLERK 03/31/2025 12:56 PM INDEX NO. 451964/2023 NYSCEF DOC. NO. 30 RECEIVED NYSCEF: 03/31/2025

SUPREME COURT OF THE STATE OF NEW YORK COUNTY OF NEW YORK: PART 52M -----------------------------------------------------------------------------------X THE CITY OF NEW YORK, NEW YORK CITY HEALTH INDEX NO. 451964/2023 AND HOSPITALS CORPORATION,

Plaintiff, MOTION DATE 10/23/2023

-v- MOTION SEQ. NO. 001 HERITAGE HEALTH AND HOUSING, INC., “JOHN OR JANE DOE NOS. 1 THROUGH 10,” and “XYZ CORP.,” the latter defendants being unknown to the plaintiff, and those DECISION + ORDER ON designations being intended to represent persons or MOTION parties, including but not limited to any mortgagees, tenants, sub-tenants, occupants, persons or corporations, having or claiming any interest in or lien upon the property described in the complaint, or in any way present on said property without the consent of the plaintiff,

Defendant. -----------------------------------------------------------------------------------X

HON. JEANINE R. JOHNSON:

The following e-filed documents, listed by NYSCEF document number (Motion 001) 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28 were read on this motion to/for DISMISSAL .

In this action, plaintiffs The City of New York (“the City”) and New York City Health

and Hospitals Corporation (“HHC”) allege that defendant Heritage Health and Housing, Inc.

(“Heritage”), along with John or Jane Doe defendants, occupy portions of the building located at

1727 Amsterdam Avenue in Harlem (“the Property”) without permission, and they seek an order

of ejectment and a declaration that plaintiffs have the right to sole possession of the Property

(NYSCEF Doc. No. 17 [Complaint]). Currently before this Court is Heritage’s pre-answer

motion to dismiss based on documentary evidence (CPLR § 3211 [a] [1]) and failure to state a

claim (CPLR § 3211 [a] [7]). The Court DENIES the motion as detailed below.

As this is a pre-answer motion to dismiss, the Court accepts the allegations in the

complaint as true (see Sassi v Mobile Life Support Servs., Inc., 37 NY3d 236, 239 [2021]). 451964/2023 THE CITY OF NEW YORK ET AL vs. HERITAGE HEALTH AND HOUSING, INC. ET Page 1 of 12 AL Motion No. 001

1 of 12 [* 1] FILED: NEW YORK COUNTY CLERK 03/31/2025 12:56 PM INDEX NO. 451964/2023 NYSCEF DOC. NO. 30 RECEIVED NYSCEF: 03/31/2025

According to the complaint, the City acquired the Property on June 2, 1969, pursuant to a

condemnation proceeding. The Property is under the jurisdiction of HHC, which granted

Heritage possession of portions of the building pursuant to a three-year license agreement dated

September 1, 2014 (NYSCEF Doc. No. 14). Heritage remained in occupancy of this portion of

the Property without objection after the Agreement expired.

On March 29, 30, and 31, 2023, however, HHC served Heritage with a termination notice

effective June 15, 2023. Despite this and despite the issuance of a 10-day notice to quit dated

June 21, 2023, Heritage has remained in the Property. As such, plaintiffs assert two causes of

action. The first, for ejectment, seeks

“an order and/or judgment ejecting Heritage, and any other persons claiming any right of use or occupancy under or through Heritage, and directing them to fully remove all of her, his, its and/or their personal property from the Property, with execution thereon, and directing the Sheriff of the City of New York to put the Plaintiffs into possession of any portion of the Property occupied by the Defendants” (id., ¶ 26).

The second cause of action, for trespass, also seeks ejectment, along with a declaration from this

Court “that the Plaintiffs are entitled to sole possession of all portions of the Property occupied

by each or any of the Defendants” and a permanent injunction that prevents “them from using or

occupying any portion of the Property” (id., *7 [B]).

Heritage’s motion to dismiss rests on its argument that the Agreement is actually a lease,

despite the fact that the document refers to it as a license.1 Citing Women’s Interart Ctr., Inc. v

New York City Economic Dev. Corp. (97 AD3d 17, 21 [1st Dept 2012]) and Union Sq. Park

Community Coalition, Inc. v New York City Dept. of Parks & Recreation (22 NY3d 648, 656

[2014] [Union Sq. Park]), it notes that courts must examine agreements as a whole to determine

1 As the dispute at hand centers on whether the Agreement is a license or a lease, in its discussion, the Court will refer to the document as “the Agreement.” 451964/2023 THE CITY OF NEW YORK ET AL vs. HERITAGE HEALTH AND HOUSING, INC. ET Page 2 of 12 AL Motion No. 001

2 of 12 [* 2] FILED: NEW YORK COUNTY CLERK 03/31/2025 12:56 PM INDEX NO. 451964/2023 NYSCEF DOC. NO. 30 RECEIVED NYSCEF: 03/31/2025

the intent of the parties. More specifically, it notes that documents that grant a party “absolute

control and possession of property at an agreed rental” are leases while those that convey “a

revocable right to be exercised over the grantor’s land without possessing any interest therein” is

a license (Union Sq. Park, 22 NY3d at 656 [internal quotation marks and citations omitted]).

In support of its contention that the Agreement is a lease based on the above standards,

Heritage submits a copy of the Agreement (NYSCEF Doc. No. 14). It points to several

provisions in the Agreement that allegedly support its position. For instance, paragraph two

states that on September 1, 2014, Health and Hospitals “shall deliver possession of the Licensed

Space on the 3rd Floor of the Building vacant and free of any tenancies,” and it acknowledged

that Heritage had been in possession of first, second, and fourth floors – the remainder of the

space covered by the Agreement – for around 20 years. Paragraph 17 grants Heritage full access

to the Property “at all times of the day and night throughout the year.” The Agreement also states

that Heritage was required to provide its own security (id., ¶ 5), to make non-structural repairs

(id.), to maintain and clean the Property (id.) and, upon consent by HHC, to renovate the

Property (id., ¶ 7). Heritage points out that the Agreement gave Heritage absolute possession and

control of the Property free of encumbrances, required Heritage to pay rent, gave Heritage full

access to the Property without any temporal restrictions, and included indemnification and

insurance provisions commonly found in leases (id., ¶¶ 8-9). Accordingly, it contends that the

document unquestionably is a lease (citing, inter alia, Solomon & Cramer LLP v Times Sq. Suites

LLC, 2021 NY Slip Op 31388 [U], *4 [Sup Ct, NY County 2021]).

It is undisputed that Heritage remained on the Property for years after the Agreement’s

September 1, 2017 expiration date. Heritage further notes that it has continued to make monthly

rental payments – payments which HHC accepted until May 2023. Heritage argues that because

451964/2023 THE CITY OF NEW YORK ET AL vs. HERITAGE HEALTH AND HOUSING, INC. ET Page 3 of 12 AL Motion No. 001

3 of 12 [* 3] FILED: NEW YORK COUNTY CLERK 03/31/2025 12:56 PM INDEX NO.

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2025 NY Slip Op 31022(U), Counsel Stack Legal Research, https://law.counselstack.com/opinion/city-of-new-york-v-heritage-health-hous-inc-nysupctnewyork-2025.