Cut-Outs, Inc. v. Man Yun Real Estate Corp.

286 A.D.2d 258, 729 N.Y.S.2d 107, 2001 N.Y. App. Div. LEXIS 8049
CourtAppellate Division of the Supreme Court of the State of New York
DecidedAugust 16, 2001
StatusPublished
Cited by3 cases

This text of 286 A.D.2d 258 (Cut-Outs, Inc. v. Man Yun Real Estate Corp.) is published on Counsel Stack Legal Research, covering Appellate Division of the Supreme Court of the State of New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Cut-Outs, Inc. v. Man Yun Real Estate Corp., 286 A.D.2d 258, 729 N.Y.S.2d 107, 2001 N.Y. App. Div. LEXIS 8049 (N.Y. Ct. App. 2001).

Opinion

Judgment, Supreme Court, New York County (Sheila AbdusSalaam, J.), entered June 9, 2000, which, after a non-jury trial, granted plaintiff tenant judgment in the amount of $24,000, plus interest, and dismissed defendant landlord’s counterclaims, unanimously reversed, on the law, with costs, the judgment vacated, the complaint dismissed, and judgment granted to defendant on its counterclaims for unpaid rent and additional rent, together with attorneys’ fees, and the matter remanded for an assessment of such amounts and entry of judgment accordingly. The Clerk is directed to enter judgment in favor of defendant dismissing the complaint.

The evidence at trial established that plaintiff is engaged in the business of die-cutting, mounting and finishing paper products, which involves the use of heavy machinery. For ap[259]*259proximately 39 years, plaintiff occupied the entire seventh floor of defendant’s building located at 107-113 Grand Street in Manhattan, pursuant to a series of five-year leases. The last of plaintiff’s leases was a modified “Standard Form of Loft Lease,” providing for a term commencing on February 1, 1992 and expiring on January 31, 1997. The lease provided for a base rent of $6,000 per month, plus certain additional rent, during the relevant period.

Plaintiff used a loading dock at 32 Mercer Street, around the corner from the building’s main entrance, for bringing in materials and sending out finished products. The building had two freight elevators accessed from the loading dock, as well as a manually operated passenger elevator accessed through the front entrance and lobby. The lease contained a provision requiring defendant to “provide passenger elevator service on business days from Monday through Fridays from 8:00 AM to 5:00 PM, and normal business hours on Saturdays. Freight elevator service shall be provided Mondays through Fridays during normal business hours (8:30 AM to 4:30 PM).”

Around the beginning of 1996, defendant advised plaintiff (which was then one of only three tenants remaining in the building, the other two being month-to-month holdovers) that its lease would not be renewed when it expired. At about the same time, defendant began making extensive renovations to the building for the purpose of converting it from light industrial use to office use, including, among other things, replacement of the manually operated passenger elevator with a handicapped-accessible automatic elevator.

By letter dated May 9, 1996, plaintiff’s counsel gave defendant notice of various alleged defaults under the lease, and demanded cure. Thereafter, plaintiff did not pay rent for the months of June or July, and vacated the premises in mid-July 1996, more than six months in advance of the expiration of the lease.

Plaintiff subsequently commenced this action in October 1996, asserting causes of action for, inter alia, partial actual eviction, constructive eviction, breach of the covenant of quiet enjoyment, breach of contract, and return of plaintiffs $12,000 non-interest bearing security deposit. The complaint alleged that, by reason of defendant’s alleged defaults, plaintiff had not been obligated to pay rent for April 1996 or subsequent months, and sought, among other damages, return of the rent plaintiff had paid for the months of April and May 1996. Defendant’s answer asserted, inter alia, a counterclaim for recovery of the rent due under the lease from June 1996 [260]*260through January 1997, and requested an award of defendant’s attorneys’ fees in this action, pursuant to article 19 of the Lease.

After a non-jury trial, the court found that plaintiff had proven both a partial actual eviction and a constructive eviction as of April 1996, and awarded plaintiff damages in the amount of the base rent it had paid for April and May 1996 ($12,000) and return of its $12,000 security deposit, for total damages in the principal amount of $24,000. The court declined to award plaintiff damages for the costs it incurred in relocating its business or its attorneys’ fees in this litigation. The court also dismissed all of defendant’s counterclaims.

In rendering its decision, however, the trial court neglected to consider or discuss the effect of the exculpatory provisions of the lease, specifically, article 4 (“Repairs”), article 13 (“Access to Premises”), article 20 (“Building Alterations and Management”), and article 31 (“Elevators, Heat, Cleaning”), which defendant invoked in its opening statement at trial and in its post-trial submissions. Those provisions specifically authorized defendant to perform the work in question without incurring liability to plaintiff, and without abating plaintiffs obligation to pay rent. Plaintiffs argument that the exculpatory provisions do not protect acts that would otherwise constitute a partial actual eviction or constructive eviction, if accepted, would largely read them out of the lease.

Plaintiff alleged that it was partially evicted by defendant’s taking of a 6-foot by 10-foot portion of the vestibule outside the passenger elevator on plaintiffs floor which was walled off pending the renovation of that elevator. However, such temporary walling off of the elevator is precisely the sort of activity incident to renovation addressed by article 20 (“Building Alterations and Management”), which was plainly intended to preclude technical eviction claims based on such renovation-related temporary encroachments on plaintiffs premises. As for the 2.5-foot-wide vestibule space that defendant’s construction manager testified would be permanently taken when the renovation was completed, plaintiff failed to prove that this encroachment constituted anything more than a de minimis taking of inessential space. Any such taking was protected by the terms of article 20, which permits defendant to “change the arrangement and/or location of public entrances, passageways, doors, doorways, corridors, elevators, stairs, toilets or other parts of the building. * * * There shall be no allowance to Tenant for diminution of rental value and no liability on the part of Owner by reason of inconvenience, annoyance or injury to business.”

[261]*261Plaintiff also claimed a partial actual eviction as a result of defendant’s installation of a new electrical conduit in space within the premises that plaintiff used for storage of its dies. Such installation was clearly protected under article 13, which specifically permits defendant “to use and maintain and replace pipes and conduits in and through the demised premises and to erect new pipes therein provided, wherever possible, they are within walls or otherwise concealed.” Again, plaintiff failed to present any evidence indicating how much space was taken by this conduit, or whether the taking was of any practical significance. (See, Two Park Ave. Co. v Intermediate Factors Corp., 17 Misc 2d 442, 444 [“There was no partial eviction because there was no deprivation of a substantial portion of the demised premises,” where landlord installed pipes suspended from tenant’s ceiling].)

Most of the other matters on which plaintiff’s claim of partial actual eviction is based relate to interference with access to and from the premises.

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Cite This Page — Counsel Stack

Bluebook (online)
286 A.D.2d 258, 729 N.Y.S.2d 107, 2001 N.Y. App. Div. LEXIS 8049, Counsel Stack Legal Research, https://law.counselstack.com/opinion/cut-outs-inc-v-man-yun-real-estate-corp-nyappdiv-2001.