Di Costanzo v. Court Tower Corp.

96 Misc. 2d 1009, 410 N.Y.S.2d 212, 1978 N.Y. Misc. LEXIS 2720
CourtNew York Supreme Court
DecidedOctober 20, 1978
StatusPublished
Cited by1 cases

This text of 96 Misc. 2d 1009 (Di Costanzo v. Court Tower Corp.) is published on Counsel Stack Legal Research, covering New York Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Di Costanzo v. Court Tower Corp., 96 Misc. 2d 1009, 410 N.Y.S.2d 212, 1978 N.Y. Misc. LEXIS 2720 (N.Y. Super. Ct. 1978).

Opinion

OPINION OF THE COURT

Salvatore T. De Matteo, J.

Plaintiff tenants move for a temporary restraining order against defendant landlords to enjoin defendants "from terminating or interfering with the normal operation of the electric [1010]*1010current” serving plaintiffs’ law office and "from terminating the plaintiffs’ lease”.

The undisputed facts as gleaned from the papers before the court are that plaintiff Philip F. Di Costanzo and his law firm occupied the 28th floor of premises 66 Court Street for over 35 years under various leases. The subject lease dated July 30, 1973 defining the rights of the parties in this action was entered into between plaintiffs and defendants’ predecessor in interest. The significant portions thereof are paragraphs "36” providing for the right of plaintiffs to extend the term of the lease for a period of five years, if at the time of the exercise of such right plaintiffs are "in good standing under all of the terms and conditions of this lease”, a "Consumer Price-Index” rider providing for increase or decrease of the rential depending on the buying power of the dollar as establsihed by the "price-index”, and an electric current rider.

The adversary differences between the parties arose upon defendant Court Tower Corp. (Court Tower) instituting in April, 1978 a summary proceeding for nonpayment of rent in the sum of $11,549.20 and plaintiffs’ interposition in said proceeding of an answer containing counterclaims and a set off for partial eviction. The court, in that proceeding, in a decision dated July 24, 1978, found that only the sum of $10,156.68 was due Court Tower as rent and additional rent, and then granted to plaintiffs the sum of $1,231.20 on their set off of partial eviction. Plaintiffs thereupon, by letter dated July 26, 1978, forwarded to Court Tower "pursuant to the decision and judgment” their check in the sum of $8,925.45 and at the same time and as part of the letter to Court Tower informed that plaintiffs were exercising their right "pursuant to paragraph 36 of the lease” to extend the term of their lease for a further period of five years. Court Tower, by letters dated the same date and on the following day, informed plaintiffs that "the landlord hereby elects to discontinue serving your premises with electric current and hereby gives you 30 days notice of said termination.” On August 2, 1978, Court Tower acknowledged receipt of plaintiffs’ check but stated that "we don’t agree that it is the proper amount due us, and therefore we are depositing this check under protest.” In addition, said defendants stated that "we do not believe that you are in 'good standing’, we do not * * * consider valid, your exercise of such option. We therefore expect that you will [1011]*1011move at the expiration of your present lease.” (The expiration date was August 31, 1978.)

Not denied by defendants is that plaintiffs were the only tenants who were given notice of discontinuance of submetering electric current service and to make their own arrangements with "Con Edison” for direct service and that plaintiffs would, of necessity, be required to have installed separate "risers, conduits and wires” at an approximate cost of $10,000; nor do defendants deny plaintiffs’ charge that defendants’ precipitate action was motivated by plaintiffs’ defense of defendants’ nonpayment of rent proceedings.

Defendants’ position, as taken in their opposing papers, is one of justification of their exercise of their legal rights, as construed by them, irrespective of the hardship imposed on plaintiffs. Defendants’ contention and cited authorities are best expressed, in capsule, that hardship is not synonymous with unconscionability. Defendants urge that the burden imposed by the electric current rider is set forth in language negotiated by plaintiffs with defendants’ predecessor in interest and was approved and accepted by plaintiffs, who are experienced legal practitioners.

Before considering the issue of unconscionability of the electric current rider, the court will first resolve defendants’ declaration that plaintiffs have failed to validly exercise their right to extend the term of their lease beyond August 31, 1978. Such issue, if alone, should best be determined in a landlord-tenant proceeding in the Civil Court of the City of New York, but as it is interwoven with the electric current service and the continued proper use of plaintiffs’ office, this court, sitting in equity, will retain jurisdiction in order that full relief, if warranted, may be granted.

Defendants apparently accept plaintiffs’ factual narration and letter exhibits as to plaintiffs’ exercise of their right to extend the term of the lease, including defendants’ letter exhibit of August 2, 1978, wherein defendants’ in conclusory terms, stated that plaintiffs were not in good standing at the time of their exercise of the option and thus no valid exercise was made. This court finds that plaintiffs have sufficiently established "the likelihood of [their] ultimate success on the merits” of their extension of the term of the lease beyond August 31, 1978 (Shelborne Beach Club v Hellman, 49 AD2d 741) and more important that the status quo of the parties be [1012]*1012maintained "until a decision is reached on the merits.” (Tucker v Toia, 54 AD2d 322, 325.)

The interpretation of the electric current rider presents a more thorny issue. The point of disagreement between the parties is the construction that each places upon the following clause: "Landlord may discontinue any of the aforesaid additional service for additional equipment upon thirty (30) days notice to Tenant without being liable to Tenant therefor or without in any way affecting this lease or the liability of Tenant hereunder or causing a diminution of rent and the same shall not be deemed to be a lessening or dimunution of services”. Defendants contend that said clause read in the context of the entire rider gives to the landlord a clear right to discontinue submetering electric current service to a tenant. The fact that such obligation to change over to direct service with "Con Edison” is onerous and unduly costly for tenants occupying the upper floors in the building does not affect nor detract from the validity of a tenant’s undertaking. The authorities cited by defendants correctly state the rule that a bargain entered into without fraud, overreaching and on equal footing is enforceable even though it results in a burdensome obligation to the tenant.

Plaintiffs, on the other hand, construe the words "discontinue any of the aforesaid additional service for additional equipment” as words of limitation to a discontinuance of service only as to "additional equipment” and not to the electric equipment that was present at the time of the execution of the lease. Any other construction would, as plaintiffs contend, render the obligation imposed on tenant unconscionable. Plaintiffs urge upon the court numerous authorities dealing with the statutory declaration of unconscionability as to clauses in leases and landlord overreaching.

This court does not accept the narrow view of either party adapted to their respective desired results. Each overlooks the broad purpose of intendment of the electric current rider which appears to be in standard form. The parties at the time of the execution of the lease recognized the existent building facilities, conditions and services being furnished to tenants. They bargained on the use of those facilities to the extent that the continued use thereof shall be feasible during the term of the lease.

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Bluebook (online)
96 Misc. 2d 1009, 410 N.Y.S.2d 212, 1978 N.Y. Misc. LEXIS 2720, Counsel Stack Legal Research, https://law.counselstack.com/opinion/di-costanzo-v-court-tower-corp-nysupct-1978.