Cobra Resources, Inc. v. Dumpl, Inc.

138 Misc. 2d 91, 522 N.Y.S.2d 433, 1987 N.Y. Misc. LEXIS 2779
CourtCivil Court of the City of New York
DecidedDecember 16, 1987
StatusPublished
Cited by4 cases

This text of 138 Misc. 2d 91 (Cobra Resources, Inc. v. Dumpl, Inc.) 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
Cobra Resources, Inc. v. Dumpl, Inc., 138 Misc. 2d 91, 522 N.Y.S.2d 433, 1987 N.Y. Misc. LEXIS 2779 (N.Y. Super. Ct. 1987).

Opinion

OPINION OF THE COURT

Lewis R. Friedman, J.

This nonpayment proceeding involves premises which are registered as an interim multiple dwelling pursuant to the Loft Law (Multiple Dwelling Law art 7-C). Article 7-C was enacted in 1982 (L 1982, ch 349), inter alia, to bring order to the chaotic rules governing lofts, to remove uncertainty in the status of loft tenants, and to regulate landlord-tenant relationships while the premises were brought into compliance with code and zoning requirements. (Multiple Dwelling Law § 280; Loft Realty Co. v Aky Hat Corp., 123 Misc 2d 440.) The statute, a compromise effort to deal with " 'interim multiple dwellings’ ” (Multiple Dwelling Law § 281 [1]), provides a [92]*92timetable for conversion and legalization (Multiple Dwelling Law § 284 [1]) and protections for both tenants (Multiple Dwelling Law § 286) and owners (Multiple Dwelling Law § 285). Section 285 (1) provides, in pertinent part: "Notwithstanding the provisions of section three hundred two or three hundred twenty-five of this chapter, the owner of an interim multiple dwelling may recover rent payable from residential occupants qualified for the protection of this article * * * and maintain an action or proceeding for possession of such premises for non-payment of rent, provided that he is in compliance with this article. ” (Emphasis added.) The italicized phrase has not been explained in the reported cases. Must the owner merely register the interim multiple dwelling with the Loft Board or must it allege compliance with the substantive legalization provisions as well?

Respondents here move for summary judgment, asserting, inter alia, that there is a jurisdictional defect in the petition in that it fails adequately to allege compliance with the Loft Law. Petitioner cross-moves for leave to amend.

A brief review of the Loft Law puts the issue into context. Prior to 1982 the Multiple Dwelling Law had two impediments to a landlord’s commencement of summary proceeding for nonpayment of rent loft cases: sections 302 and 325. Section 302 (1) (b) prohibits nonpayment proceedings in multiple dwellings where there is no valid certificate of occupancy; section 325 similarly requires a valid multiple dwelling registration statement. Residential use by three or more families makes a building a multiple dwelling (Multiple Dwelling Law § 4 [7]). In the typical loft setting, the residential use violates the certificate of occupancy; the owner is, therefore, barred by Multiple Dwelling Law § 302 from bringing a proceeding to recover rent. Also, since the residential use is "illegal”, the building cannot be registered as a multiple dwelling with the Department of Housing Preservation and Development; a proceeding to recover rent is barred by Multiple Dwelling Law § 325 (2) and Administrative Code of the City of New York § 27-2107 (b) (formerly § D26-41.21 [b]). (See, Mandel v Pitkowsky, 102 Misc 2d 478 [App Term, 1st Dept 1979].)

The Loft Board, the administrative agency which regulates lofts and the conversion process (Multiple Dwelling Law § 282), in January 1983 adopted a regulation holding that registration alone was sufficient to meet the article 7-C "compliance” requirement of Multiple Dwelling Law § 285 (1) and [93]*93to allow a proceeding to collect rent. That regulation was invalidated.

"Section 285 (1) of Article 7-C creates an exception to the barriers of sections 302 and 325 where the owner is in full compliance with Article 7-C.

"In so far as the regulations at issue waive the statutory prerequisites of section 285 (1), it is contrary to law and invalid.” (Lower Manhattan Loft Tenants v New York City Loft Bd., NYLJ, Aug. 15, 1984, at 11, cols 1, 3 [Sup Ct, NY County].) No appeal was taken by the Loft Board.

To the contrary, the Appellate Term, First Department, has held that only registration is required. In 291 7th Realty Assocs. v Shattuck (NYLJ, Mar. 5, 1986, at 6, col 1) the court found that an affirmative defense that pleaded a failure "to allege with adequate particularity that it is in compliance with Article 7C of the MDL” should be stricken since registration with the Loft Board was alleged.

The issue was recently considered by the Court of Appeals in Matter of Blackgold Realty Corp. v Milne (69 NY2d 719 [1987]). That decision, however, leaves open as many questions as it answers. The court held the nonpayment petitions "jurisdictionally defective * * * Inasmuch as the landlord failed to allege compliance with the Loft Law’s 'owner obligations’ (see, Multiple Dwelling Law § 284 [2]), it is not entitled to rely on the Loft Law’s statutory exemption from the jurisdictional predicate of multiple dwelling registration (see, Multiple Dwelling Law § 285 [1]).” (Supra, at 721.) A review of the record on appeal in Blackgold shows that the petitioner had properly pleaded registration with the Loft Board.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Missry v. Ehlich
1 Misc. 3d 723 (Civil Court of the City of New York, 2003)
County Dollar Corp. v. Douglas
161 A.D.2d 370 (Appellate Division of the Supreme Court of New York, 1990)
Oelbermann Associates Ltd. Partnership v. Borov
141 Misc. 2d 838 (Civil Court of the City of New York, 1988)
Tysons Associates v. Tribeca Audio Research Inc.
140 Misc. 2d 38 (Civil Court of the City of New York, 1988)

Cite This Page — Counsel Stack

Bluebook (online)
138 Misc. 2d 91, 522 N.Y.S.2d 433, 1987 N.Y. Misc. LEXIS 2779, Counsel Stack Legal Research, https://law.counselstack.com/opinion/cobra-resources-inc-v-dumpl-inc-nycivct-1987.