Duda v. Thompson

169 Misc. 2d 649, 647 N.Y.S.2d 401, 1996 N.Y. Misc. LEXIS 316
CourtNew York Supreme Court
DecidedAugust 8, 1996
StatusPublished
Cited by6 cases

This text of 169 Misc. 2d 649 (Duda v. Thompson) 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
Duda v. Thompson, 169 Misc. 2d 649, 647 N.Y.S.2d 401, 1996 N.Y. Misc. LEXIS 316 (N.Y. Super. Ct. 1996).

Opinion

OPINION OF THE COURT

W. Denis Donovan, J.

In this breach of lease action, plaintiff landlord moves for summary judgment and defendant tenant cross-moves for dismissal. It is ordered that this motion is granted and the cross motion is denied.

[650]*650Nearing expiration of a prior two-year lease of a house owned by plaintiff, defendant renewed with a similar two-year lease for the period January 1, 1995 to December 31, 1996. The form of the lease, as was the prior, is a standard Blumberg house lease form (number A54) stating that the annual basic rent is $19,200 per year which may be paid in monthly installments for the convenience of the tenant only, automatically recalled to the annual amount (or balance of amount) upon default. Paragraph 19D of the lease, dealing with defaults and remedies, allows but does not require the landlord to re-enter and re-rent to the net credit of the unpaid portion of rents and cost of re-letting.

Defendant failed to pay, even in part, the November and December 1995 and January 1996 rent installments. After due notice of default and acceleration was served on January 10, 1996, this action was filed on January 31, 1996, the summons and complaint served on February 20th and issue was actually joined by defendant on February 28, 1996. This motion by plaintiff followed shortly thereafter.

Upon court inquiry defendant’s counsel advised the court some 40 days after the full submission of this motion that defendant vacated the leasehold on March 11, 1996, some 11 days before the submission. Plaintiff’s counsel asserts that only upon this recent advice has she or her client become aware of defendant’s departure and had no inkling heretofore that defendant was not continuing his occupancy without paying the rent.

In his answering papers and cross motion, defendant alleges that certain questions of law and fact as raised by the three affirmative defenses set forth in his answer prevent any award of summary judgment. The first of these defenses presented an issue as to proper service; the court, however, held a traverse hearing on July 31, 1996, found service to have been proper and a separate order is being entered thereon.

The second affirmative defense of failure to state a cause of action is stricken both as improper to an affirmative defense and substantively, upon review of the complaint, the causes as pleaded are proper and sufficient.

The third and last affirmative defense, apparently questioning the voidability of paragraph 3 of the lease dealing with the right of the landlord in the event of the tenant’s default to "accelerate” the balance of monthly payments is, as a matter of law, not properly cognizable. Under the circumstances shown, an acceleration clause of the nature agreed to here is neither a [651]*651penalty nor forfeiture when the tenant defaults on a material term of the lease such as rent payment and hence is not against public policy (see, Fifty States Mtg. Corp. v Pioneer Auto Parks, 46 NY2d 573). Nor will equity intervene where the breach is unexplained, unexcused; no earlier effort to cure was made and defendant, after enjoying five months of unpaid occupancy, secretly abandons the premises without surrender of keys or any notice to the landlord.

Therefore, summary judgment is awarded to plaintiff.

As and for damages, the plaintiff is correct in demanding the three months of agreed late charges at $100 per month for the unpaid installments for November and December 1995 and January 1996; hence $300 in additional late charges is allowed, any greater right to same cutoff by plaintiff’s notice of acceleration served January 10, 1996 (Federal Natl. Mtge. Assn. v Mebane, 208 AD2d 892, citing Centerbank v D’Assaro, 158 Misc 2d 92).

The more troublesome aspect concerning damages is the defendant’s claim in the motion papers that plaintiff is obliged to mitigate rental damages. In just such an instance, however, and when in further fact the breach was occasioned by the tenant’s death even prior to the agreed occupancy, the Court of Appeals in 1895 in Becar v Flues (64 NY 518) held that the landlord had no duty to mitigate.

In the past 100 years, this rule has been often-repeated and applied in cases of breached commercial leases while in contrast, some courts have collaterally and steadily taken a "more modern or just” view that, in line with the generalized mitigation obligation in contract law, tenant breach and abandonment of a residential lease should create a mitigation duty on the part of the landlord (see, Syndicate Bldg. Corp. v Lorber, 128 AD2d 381; Paragon Indus. v Williams, 122 Misc 2d 628 [App Term, 2d Dept 1983]; Parkwood Realty Corp. v Marcano, 77 Misc 2d 690; but see, Birchwood Assn. v Stern, 86 Misc 2d 607, affd 88 Misc 2d 937 [App Term, 2d Dept 1976]).

The Court of Appeals has now revisited the mitigation issue in Holy Props, v Cole Prods. (87 NY2d 130 [1995]). The tenant in that action breached its commercial lease and abandoned the premises. The Court of Appeals distinguished all leases, without any stated qualification, from other contracts generally subject to mitigation obligation on the theory that leases have always historically represented and still represent a present transfer of an estate in real property and are not executory in any nature and sense. Therefore, the Court theorized [652]*652that, even if the landlord obtains eviction for nonpayment, the rent obligation continues if the lease so allows and the landlord is not obligated to mitigate; rather she may either (a) do. nothing and sue for the rent still due, or (b) may re-let on her own account effectuating a release of the tenant, or (c) may re-let for the tenant’s account allocating new receipts first toward re-letting costs and then against the rent owed. Here, the lease terms themselves provide for the third option, but only if the landlord chooses to make that effort.

Some commentators have chosen not to view Holy Props, (supra) as having an effect on residential leases because of its factual setting, i.e., a commercial lease was at issue, and further because the Court did not expressly reject the recent body of case law imposing a mitigation obligation in residential lease disputes. The commentators find difficulty, however, having to concede that the Court found its support in Holy Props. in its 100-year-old holding in Becar (supra), a residential lease action and further, that the Court emphasized the policy need for certainty in long-settled precedents (Estis and Robbins, Landlord and Tenant Law, Commercial Leases — Court Affirms Landlord Has No Duty to Mitigate Damages, NYLJ, Feb. 7, 1996, at 5, col 2). Another commentator, however, has reported and digested Holy Props. ’ lack of mitigation obligation without any attempted qualification based on character of the lease (Siegel, 436 NY St L Dig, at 3 [Apr. 1996]), just as the Court of Appeals itself made no analytical distinction. One legal reporter has taken just notice of the possible irrational consequences of attempting to continue the mitigation distinction between the two basic types of leases following the Holy Props. holdings (Schwartz, No-Mitigation Rule Still in Effect, NYLJ, June 10, 1996, at SI, col 3).

Called upon here by defendant to continue such a distinction, the court is, however, compelled to apply Holy Props, (supra)

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Bluebook (online)
169 Misc. 2d 649, 647 N.Y.S.2d 401, 1996 N.Y. Misc. LEXIS 316, Counsel Stack Legal Research, https://law.counselstack.com/opinion/duda-v-thompson-nysupct-1996.