Euclid Holding Co. v. Schulte

153 Misc. 455, 274 N.Y.S. 515, 1934 N.Y. Misc. LEXIS 1686
CourtCity of New York Municipal Court
DecidedSeptember 5, 1934
StatusPublished
Cited by4 cases

This text of 153 Misc. 455 (Euclid Holding Co. v. Schulte) is published on Counsel Stack Legal Research, covering City of New York Municipal Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Euclid Holding Co. v. Schulte, 153 Misc. 455, 274 N.Y.S. 515, 1934 N.Y. Misc. LEXIS 1686 (N.Y. Super. Ct. 1934).

Opinion

Prince, J.

This is a summary proceeding to recover the possession of real property in which the landlord also seeks to recover a judgment in the sum of $17,330.92 with interest, which sum represents real estate taxes on the premises which it was the duty of the tenant under the lease to pay. The tenant having defaulted in the payment of said taxes, the landlord made the payment, and, under the terms of the lease, all amounts so expended by the landlord become additional rental payable under the lease.

[456]*456The premises involved are known as 2341-2359 Broadway, 251 West Eighty-fifth street, and 250 West Eighty-sixth street in the borough of Manhattan, city of New York. The lease involved was made on December 10, 1919, between Euclid Holding Company, landlord, and David A. Schulte, tenant. The faithful performance of the tenant was guaranteed by a New York corporation, D. A. Schulte, Inc. Later, on April 7, 1920, the lease was assigned to Dasco Realty Corporation with the consent of the landlord, upon condition, however, that the assignment should not operate to relieve David A. Schulte of any liability whatsoever under the said lease. The lease is for a term of twenty-one years commencing October 1, 1920, and expiring on September 30, 1941. The Dasco Realty Corporation, the assignee, assumed the performance of the lease, and, since the commencement of the term, has been in possession of the premises.

On April 1, 1934, real estate taxes upon the said premises for the first half of the year 1934 in the sum of $16,932 became due and payable to the city of New York. The tenant defaulted in the payment thereof, and said default continued for more than sixty days. On June 26, 1934, the landlord paid to the city of New York the sum of $17,330.92 in payment of said real estate taxes plus the interest which had accrued. In accordance with the terms of the lease, the landlord, having made such payments, was empowered to regard it as additional rental under the lease. It is conceded that no part of the sum of $17,330.92 has been paid to the landlord by the tenant although duly demanded. And this proceeding is now brought for the possession of the premises for the non-payment of $17,330.92.

The answer admits practically all of the allegations of the petition. The only question which arises in the case arises by virtue of the affirmative defenses set forth in the answer.

Under such affirmative defenses set forth in their respective answers the original tenant, David A. Schulte, the guarantor, D. A. Schulte, Inc., and the tenant in possession, Dasco Realty Corporation, contend that the lease, when made, was and now is illegal, and the occupancy of the premises has been and still is unlawful because no certificate of compliance had been secured by Euclid Holding Company from the tenement house department and no certificate of occupancy had been secured by it from the superintendent of buildings for the premises after the completion of certain alterations made by it in 1916 and 1917, which alterations are claimed to come within the provision of the Building Code of the city of New York.

The answers also allege a disaffirmance and rescission of the lease by reason of its invalidity, and an offer is made in the answers to [457]*457reléase and discharge Euclid Holding Company from any obligation on its part under the lease and to execute any formal document for the purpose of effecting said disaffirmance and rescission. Dasco Realty Corporation, the tenant herein, also counterclaims for the recovery of the fixed rent, real estate taxes, insurance and water taxes paid by it since taking possession of the premises.

Commencing in the latter part of 1916 and running into the year 1917, Euclid Holding Company, the landlord, made an alteration to the building, which resulted in changing the first-story apartments into retail stores. It is not disputed that no certificate of occupancy was secured from the superintendent of buildings after the completion of such alteration and that no such certificate of occupancy had been secured prior to the making of the lease involved in this proceeding, and none has ever since been secured.

The unique and interesting question thus presented is whether the parties made a lease which is illegal by reason of the failure of the landlord to secure a certificate of occupancy for the building after the completion of such alteration, which in point of time was prior to the execution of the lease.

Section 411-a of the Greater New York Charter, effective May, 1916 (Laws of 1916, chap. 503, § 5),

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Bluebook (online)
153 Misc. 455, 274 N.Y.S. 515, 1934 N.Y. Misc. LEXIS 1686, Counsel Stack Legal Research, https://law.counselstack.com/opinion/euclid-holding-co-v-schulte-nynyccityct-1934.