Dinkes v. Glen Oaks Village, Inc.

206 Misc. 143, 132 N.Y.S.2d 138, 1954 N.Y. Misc. LEXIS 3404
CourtNew York Supreme Court
DecidedJune 1, 1954
StatusPublished
Cited by2 cases

This text of 206 Misc. 143 (Dinkes v. Glen Oaks Village, Inc.) 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
Dinkes v. Glen Oaks Village, Inc., 206 Misc. 143, 132 N.Y.S.2d 138, 1954 N.Y. Misc. LEXIS 3404 (N.Y. Super. Ct. 1954).

Opinion

Pette, J.

Plaintiffs’ motion is for an injunction enjoining the defendants from prosecuting any action in the Municipal Court of the City of New York to evict them, or any of the persons on whose behalf this action was instituted, and to restrain any collection of an increase in the rentals for the housing accommodations, pending a final determination of an action brought in the United States District Court in the Southern District of New York entitled Benjamin Dinkes and Harvey Kates, on behalf of themselves and all others similarly situated, Plaintiffs, against The Federal Housing Administration, Glen Oaks Village, Inc. and Gross-Morton Management Corp., Defendants.”

Defendants have made a cross motion, pursuant to section 117 of the Civil Practice Act for an order, under rule 106 of the Rules of Civil Practice, dismissing the complaint upon the grounds (a) that the complaint does not state facts sufficient to constitute a cause of action, (b) and on the further ground that the court does not have jurisdiction of the subject of the action.

A brief statement of the pertinent facts follows:

Glen Oaks Village is a project financed by mortgage loans insured by the Federal Housing Administration (hereinafter referred to as FHA ”) under section 608 of the National Housing Act (U. S. Code, tit. 12, § 1743). In behalf of themselves and all others similarly situated ” these two tenants allege that although the rents charged at Glen Oaks Village are not in excess of the maximum average rents allowed by FHA, the determination by FHA of such maximum rents was arbitrary, unreasonable and capricious ” in that the estimated necessary current cost determined by FHA was much higher than the ultimate actual cost of constructing- the project. On that basis the tenants seek a review and a redetermination by FHA of the maximum average rental on a lower scale.

The complaint alleges that the defendants applied for FHA mortgage insurance for the purpose of constructing the project known as Glen Oaks Village; that FHA fixed, as it had the right to, a maximum average rental which defendants were not permitted to exceed; that the rental thus fixed was based upon " erroneous and false plans, estimates and drawings furnished by defendants ” and known by them to be such; that in reliance thereon FHA fixed a higher average maximum rental than it would have established " had the plans, schedules and estimates [146]*146* * * been accurate ”; that FHA’s determination of maximum rents was " arbitrary, unreasonable and capricious ” its computations were " grossly inaccurate ” and they were arrived at ‘ ‘ without proper investigation ’ ’ and without comparison " with the actual construction cost.”

The complaint further alleges that the rents currently charged are, therefore, " excessive and illegal ” and that plaintiffs have withheld such portions of the amounts normally paid as rentals to the defendants as are excessive ”; the plaintiffs have started the Federal court action to review the determination of FHA; and that defendants have threatened eviction proceedings and have obtained authorization from FHA to increase their rents on the basis of the same erroneous computations. Demand is then made for a final injunction against the bringing of summary proceedings or the increasing of rents pending a final determination of the Federal court action.

It appears that neither the complaint nor the affidavit of Benjamin Dinkes sworn to May 12, 1954, and submitted in support of the plaintiffs’ instant motion, avers that the rent charged and/or collected from the tenants of Glen Oaks Village, Inc. (including the individual plaintiffs herein) exceeds the maximum average rent ceiling established by the Federal Housing Administrator. Both the complaint and Mr. Dinkes’ affidavit admit that the maximum average rent ceiling is established by the Federal Housing Administrator in his sole discretion. Dinkes refers to various items in the newspapers for the support of his allegations concerning current congressional investigations as to the alleged disclosure that the FHA estimate of over $26,000,-000 turned out to be $6,000,000 more than the actual cost of the Glen Oaks project.

Apparently, on the basis of this disparity between the FHA cost estimates and the later actual cost, the Federal court action was started for the purpose of reviewing FHA’s determination.

The moving affidavit alleges that the tenants have withheld 25% of their lease rentals as excessive and illegal ” which they are ‘ ‘ entitled ” to do and which is " imperative ’ ’ for their protection; and that the defendants have threatened to bring eviction proceedings against tenants who do not pay the full rents provided for in their leases and that therefore an injunction against such proceedings is necessary, and urges that no harm can come from this because tenants are willing to pay the withheld 25% to an escrowee designated by defendants but to remain in escrow " pending the outcome of the Federal action ’ ’.

[147]*147Finally, Dinkes alleges that FHA permitted an additional maximum rent increase in November of 1952, and that same is unjustified.

The Federal court complaint annexed to the moving papers alleges that the fixing by FHA of the maximum average rents was predicated upon FIIA’s own estimate as to the necessary current cost of the project; and that this estimate was “ arbitrary, unreasonable and capricious ” in that FHA failed to determine-the cost “ accurately or properly.”

In a second cause of action, the complaint adds an allegation that the maximum rental fixed by FHA was based upon its “ arbitrary ” determination of necessary current costs and was proportionately higher than it would have been had it been fixed on the basis of actual costs.

In a third cause of action plaintiffs allege that the project was constructed in a manner which differed ‘ materially ’ ’ from the plans originally submitted by the owner, as a result of which the project was constructed at a cost substantially less than estimated.

The complaint contains a broad prayer for relief in the nature of a redetermination of FHA maximum rents ab initio on the basis of actual cost of the project, that the defendants be required to pay over to FHA any rents collected in excess of the maximum rents as so redetermined, that FHA distribute such excess among the tenants and that any inconsistent rent increases be set aside.

It is well settled in the State of New York that where a plaintiff applies for the drastic relief of a temporary injunction, he must show a clear probability of ultimate success and that the damage to him would be greater if the injunction were not granted than defendant’s damage would be if it were granted.

Even a doubtful cause of action or a cloudy prospect of ultimate success is enough to defeat the application for injunctive relief. This is the more so, and becomes a fatal obstacle to relief when, as in this case, the complaint is wholly insufficient and there is no reasonable possibility that plaintiffs will ever achieve any measure of success.

Conclusory allegations which are not supported by the facts from which the pleader drew his conclusions are ‘ ‘ legally ineffective ” (Kalmanash v. Smith, 291 N. Y. 142, 154). Cf such character are such allegations as “ grossly excessive ” (Kalmanash v. Smith, supra), “ exorbitant and out of proportion ”

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Related

Federal Housing Commissioner v. Reese
62 Misc. 2d 522 (Civil Court of the City of New York, 1970)
Allen v. Thousand Island Park Corp.
18 Misc. 2d 1079 (New York Supreme Court, 1959)

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206 Misc. 143, 132 N.Y.S.2d 138, 1954 N.Y. Misc. LEXIS 3404, Counsel Stack Legal Research, https://law.counselstack.com/opinion/dinkes-v-glen-oaks-village-inc-nysupct-1954.