Gilpin v. Mutual Life Insurance

271 A.D.2d 499

This text of 271 A.D.2d 499 (Gilpin v. Mutual Life Insurance) 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
Gilpin v. Mutual Life Insurance, 271 A.D.2d 499 (N.Y. Ct. App. 1946).

Opinion

Dore, J.

Plaintiffs, tenants or occupants of the office building, 512 Fifth Avenue, New York, N. Y., sued defendant Mutual Life Insurance Company, owner, and defendant Manufacturers Trust Company, as lessee, for a declaratory judgment to enjoin defendants from instituting proceedings to remove plaintiffs from the building and to determine the legal relations of the parties. The landlord brought summary dispossess proceedings in the Municipal Court against a number of the plaintiffs; such proceedings were consolidated with plaintiffs’ action in the Supreme Court and all were tried together.

The Business Rent Law (L. 1945, ch. 314, as amd. by L. 1946, ch. 273), so far as here relevant, provides that so long as a tenant continues to pay the rent to which the landlord is entitled under the' provisions of the act, he may not be removed from any business space unless (§ 8, subd. [c]) the landlord seeks in good faith to recover possession for the immediate purpose of demolishing the building with the intention of constructing a new building: “ and the plans for such construction have been approved by the proper authorities, if such approval is required by law.” In the case at bar plaintiffs are entitled to the benefits of the Business Rent Law as they have all duly tendered their rents and such tender is a continuing one. The issue presented at trial was whether the landlord had complied with the above provisions of the statute so as to be entitled to dispossess the tenants. After trial at Special Term, the court found that the landlord had in all respects complied with the statutory provisions, and accordingly dismissed plaintiffs ’ complaint, directed plaintiffs’ removal from the premises and awarded possession to Mutual as landlord. Plaintiffs appeal.

We think the trial court correctly found that defendant Mutual, as landlord, sought in good faith to recover possession of the property for the immediate purpose of demolishing the present building with the intention of constructing a new building. The lease with Manufacturers Trust Company is not under the [502]*502statute a legal .impediment preventing the landlord from proceeding with' demolition and erection of a new building. In such lease Mutual, as owner, obligates itself to pay the cost of demolition and construction to the extent of $1,000,000 and has full veto power over all contracts pertaining to the work. Once erected, the new building belongs to the owner-landlord, and the lessee covenants not to remove nor alter. We also find that plaintiffs failed to prove any fraud, estoppel, or improper curtailment of services. The trial court properly found that the plans for the proposed, bank building to be constructed after demolition of the present office building have been approved as required by the Department of Housing and Buildings of the City of New York.

The landlord, however, applied to the United States Civilian Production Administration for approval of its new construction project as required by an outstanding order of that Federal agency; such approval was denied in May, 1946, and no appeal was taken. Accordingly, of all the numerous points raised by appellants, we find that the sole issue surviving on appeal is whether this is a case in which approval of the plans by the Civilian Production Administration is “ required by law ” under section 8, subdivision (c), of the Business Rent Law {supra) before the landlord can legally recover possession. Keeping in mind the object and purpose of the statute and the conditions existing when it was adopted, w;e reach the conclusion on all the facts disclosed that such approval is required by law', and as it concededly was not secured-but on the contrary was expressly denied, the landlord failed to make out a cause for dispossess under the act. On this ground alone the judgment and final order should be reversed.

To effectuate the Veterans’ Emergency Housing Program, the Civilian Production Administration issued an order designed to divert “ critical materials from deferrable or "less essential construction. ’’ (General Restrictions on Construction, Part 4700, as amended August 27, 1946; 11 Federal Register 9515-9517.) So far as here relevant to the facts before us, the order forbids ‘ ‘ the beginning of construction and repair work on buildings and certain other structures ” (such as the proposed new bank building) without first obtaining specific authorization. The form of application required to be submitted by those seeking authorization to build prescribes that a description of the project with a “ plan ” or sketch showing the principal dimensions shall be annexed. Demolition, excavation and site preparation work are excluded from its operation. Violations of the order are punishable as a crime.

[503]*503Under section 344-a of the Civil Practice Act we may take judicial notice of such order as a rule or regulation of an executive department of the government of the United States, or a public board, agency or officer created by the law thereof.” (See U. S. Code, tit. 44, § 307; United States v. Lederer, 140 F. 2d 136, 139; United States v. Lutz, 142 F. 2d 985, 989; Caha v. United States, 152 U. S. 211, 221-222; Thornton v. United States, 271 U. S. 414, 420.)

These requirements of the regulations of the Civilian Production Administration must be read with our State Business Rent Law which expressly declares the existence of a public emergency. The act is declared to be a measure designed to protect public safety and inter alia to conserve “ essential materials.” As indicated, section 8, subdivision (c), of the Act, in addition to the landlord’s good faith, also expressly requires that “ the plans for such construction have been approved by the proper authorities, if such approval is required by law.”

The word plans ” in the statute must be construed with reference to the object sought to be attained by the Legislature in the enactment and that construction is to be preferred which furthers such object and purpose. (McKinney’s Cons. Laws of N. Y., Book 1, Statutes [1942 ed.], § 96; Brustein v. New Amsterdam Casualty Co., 255 N. Y. 137, 141; Matter of Jannicky, 209 N. Y. 413, 418.) When we read the language of section 8, subdivision (c), with a consideration of the conditions the act was proposed to operate on, we reach the conclusion that the phrase “ plans for such construction ” includes construction projects. Linguistically one correct and approved definition of “ plan ” is “ project ” (Murray’s Oxford Dictionary Unabridged, 941). , Factually we think it is fair to say the Legislature intended that no matter how clear the landlord’s good faith, if he could not legally construct a proposed new building after demolishing the old, the exception made in section 8, subdivision (c), to the statute’s general blanket denial of dispossess proceedings was not applicable, i.e., under section 8, subdivision (c), there was to bo no dispossess for demolition unless the new construction project could lawfully be erected after demolition. The reason is inherent in the general aim of the whole act and the specific intent of the exception in question. If a landlord demolishes, and builds instead a new structure^ additional commercial space is thereby made available, emergency conditions are lessened and the purpose of the act achieved.

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Related

Caha v. United States
152 U.S. 211 (Supreme Court, 1894)
Thornton v. United States
271 U.S. 414 (Supreme Court, 1926)
United States v. Lutz
142 F.2d 985 (Third Circuit, 1944)
United States Ex Rel. Brown v. Lederer
140 F.2d 136 (Seventh Circuit, 1944)
Matter of Jannicky
103 N.E. 715 (New York Court of Appeals, 1913)
Brustein v. New Amsterdam Casualty Co.
174 N.E. 304 (New York Court of Appeals, 1931)

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Bluebook (online)
271 A.D.2d 499, Counsel Stack Legal Research, https://law.counselstack.com/opinion/gilpin-v-mutual-life-insurance-nyappdiv-1946.