Dulberg v. Ebenhart

68 A.D.2d 323, 417 N.Y.S.2d 71, 1979 N.Y. App. Div. LEXIS 10942
CourtAppellate Division of the Supreme Court of the State of New York
DecidedJune 5, 1979
StatusPublished
Cited by39 cases

This text of 68 A.D.2d 323 (Dulberg v. Ebenhart) 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
Dulberg v. Ebenhart, 68 A.D.2d 323, 417 N.Y.S.2d 71, 1979 N.Y. App. Div. LEXIS 10942 (N.Y. Ct. App. 1979).

Opinion

OPINION OF THE COURT

Lupiano, J.

Respondent Rita Ebenhart has occupied a rent-controlled apartment on Riverside Drive since 1957. On July 7, 1975, in the course of a foreclosure action in the Supreme Court, New York County, against the then owner of the real property of which the leased premises form a part, Special Term appointed one Alvin H. Heller as "Receiver for the benefit of the plaintiff” (Tobias Heller)—the holder of the mortgage in the action to foreclose same—"of all the rents and profits now due or to become due.” The receiver was also empowered "to institute and carry on such legal proceedings necessary to recover possession of the whole or any part of said premises, and to institute and prosecute suits for collection of rents now due or hereafter to become due * * * and to institute and prosecute summary proceedings for the removal of any tenant * * * therefrom.” Further, the order provided that the tenants are to pay to the receiver all rents "until the further order of (the) Court” and that the receiver "retain the money which may come into his hands, other than the expenditures *. * * authorized by virtue of his appointment, until further order of (the) Court.” On or about August 10, • 1976, a final judgment of foreclosure was entered in the Supreme Court action and on September 14, 1976, the building was sold at judicial sale to Tobias Heller, the holder of the mortgage foreclosed, who had been the owner of this real property prior to his sale to the defendant in the foreclosure action.

On November 15, 1976, petitioner herein, one Morris Dulherg, as agent of the receiver Alvin Heller, initiated a summary proceeding in Civil Court, New York County, to evict respondent Ebenhart for nonpayment of rent in the amount of $2,326.47. The pertinent allegations of the petition state that petitioner, Morris Dulberg, "is authorized to institute and maintain this proceeding and is the agent in respect to the premises * * * of Alvin H. Heller, Receiver of the premises” and that respondent "is the tenant of said premises who entered in possession thereof under written rental agreement made on or about October 1, 1959 between respondent and the landlord receiver’s predecessor, wherein respondent promised to pay to landlord * * * rent * * * each month in advance on the 1st day of each month.” The notice of petition describes [325]*325petitioner as "Agent for Alvin H. Heller, Receiver” in the title of the proceeding.

By order entered April 28, 1977 in the summary proceeding, Special Term of the Civil Court denied the respondent tenant’s motion for summary judgment brought on the ground that the receiver has no standing to "press” the nonpayment proceeding. The basis for the denial as articulated by Special Term (Civil Court) is as follows: The receiver "was appointed by an order of the Supreme Court. If the tenant wishes to challenge the propriety of his appointment, she will have to do so in the forum which authorized the appointment.” However, it is clear from the tenant’s moving papers on this motion (entitled cross motion for summary judgment to dismiss) that the tenant was not challenging the propriety of the appointment, but simply asserting that "Alvin Heller has no legal standing whatsoever to take this action as his appointment for Receiver ended with the Final Judgment of Foreclosure dated July 30, 1976.”

Subsequently it appears the respondent tenant defaulted on the day set for trial, to wit, May 9, 1977. Petitioner entered a default judgment which the tenant subsequently sought to vacate. By order dated January 9, 1978, entered January 10, 1978, in this Civil Court proceeding, the tenant’s motion to vacate the default was granted on condition that she deposit with the Clerk of said court the sum of $2,326.47 (rent arrears) on or before January 19,. 1978. Tenant’s further motion to reargue her prior motion to vacate the default was denied by order entered January 30, 1978 which, however, extended the time in which the tenant could deposit the $2,326.47 with the Clerk of the Civil Court to on or before February 6, 1978.

The tenant’s appeal from these orders to the Appellate Term resulted in an order entered September 18, 1978, wherein the appeal from the order entered April 28, 1977 was dismissed as untimely, the appeal from the order entered January 30, 1978 was dismissed as nonappealable, and the appeal from the January 9, 1978 order was entertained and resulted in an affirmance. Insofar as here pertinent, the Appellate Term stated in its Per Curiam: "Tenant’s claim that she was entitled to summary judgment is without merit. The petitioner clearly had standing to maintain the summary proceeding seeking possession for nonpayment of rent, inasmuch as his appointment as receiver in foreclosure was to last [326]*326until the 'further order of this Court’ and satisfied the requirements of CPLR 6401(c).”

We granted leave to appeal to the respondent tenant from so much of the Appellate Term order as affirmed the Civil Court order entered January 10, 1978.

CPLR 6401 (subd [c]) provides that: "[a] temporary receivership shall not continue after final judgment unless otherwise directed by the court.” Prior to adoption of CPLR 6401 (subd [c]), it was recognized that a receivership terminated upon entry of judgment adverse to the party who had obtained the appointment of the receiver (Colwell v Garfield Nat. Bank, 119 NY 408; Baksi v Wallman, 272 App Div 752). The legislative studies and reports relevant to CPLR 6401 (subd [c]) acknowledge that it is a new section which departs from the former law requiring a separate order after final judgment to continue the receivership by allowing the court to direct the continuation of the receivership in the original appointing order (see Third Preliminary Report, NY Advisory Committee on Prac and Procedure, 373-374).

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Cite This Page — Counsel Stack

Bluebook (online)
68 A.D.2d 323, 417 N.Y.S.2d 71, 1979 N.Y. App. Div. LEXIS 10942, Counsel Stack Legal Research, https://law.counselstack.com/opinion/dulberg-v-ebenhart-nyappdiv-1979.