Gregori v. Ace 318 Corp.

134 Misc. 2d 871, 513 N.Y.S.2d 620, 1987 N.Y. Misc. LEXIS 2122
CourtCivil Court of the City of New York
DecidedMarch 11, 1987
StatusPublished
Cited by5 cases

This text of 134 Misc. 2d 871 (Gregori v. Ace 318 Corp.) is published on Counsel Stack Legal Research, covering Civil Court of the City of New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Gregori v. Ace 318 Corp., 134 Misc. 2d 871, 513 N.Y.S.2d 620, 1987 N.Y. Misc. LEXIS 2122 (N.Y. Super. Ct. 1987).

Opinion

OPINION OF THE COURT

Lewis R. Friedman, J.

It has long been established that an offense against the [872]*872dignity of the court "should not go unpunished, if for no other reason than to deter others from the commission of like acts.” (Matter of Hopper, 9 Misc 171, affd 145 NY 605 [1895].) This case presents important questions, not previously addressed in the reported cases, on the punishment for civil and criminal contempt.

This proceeding was commenced by petitioners, residents of 168 East 24th Street (the premises), for an order pursuant to Administrative Code of the City of New York (Housing Maintenance Code) § D26-51.01 (h) directing the owners of the premises to remove certain violations and "conditions constituting violations”. The respondents are the owning corporation, its principal, Rose Hiller, and her son, Steven Hiller, an attorney with offices at the premises who is involved in its operation (collectively, the owners) and the Department of Housing Preservation and Development (DHPD). The premises is a single-room occupancy (SRO) rooming house.

The parties entered into four "interim” consent orders dated October 18, 1985 (two orders), November 15, 1985 and November 27, 1985, each of which set repair schedules, provided for increased security, and set forth standards for heat and hot water, cleaning and general maintenance. All work was to be completed no later than December 6, 1985.

THE CONTEMPT HEARING

Petitioners commenced the instant proceeding contending that the repairs done and the security provided wére not in accord with the orders and that numerous specific agreements had been violated. Petitioners seek civil and criminal contempt sanctions. The owners’ defense was that extensive repairs had been performed at the premises. The court, which had visited the premises with counsel for all parties prior to the signing of the last consent orders, conducted an extensive trial of the issues. There is no doubt whatever that the work was not performed as required by the court orders. Indeed, since the owners do not seriously contend that they are in compliance with the terms of the repair orders, the court need not summarize the testimony at length. Almost no work was accomplished before this contempt proceeding was commenced; much of the repair work was poorly done and had to be redone.

The owners attempted to establish that they had difficulty in gaining access to a few rooms, in part because the petition[873]*873ers would not move to other rooms during the repairs. The court credits the testimony of the tenants and concludes that there was no good-faith effort to gain access to the rooms on proper notice.

The security service provided violated the court orders and interfered with petitioners’ rights to enter the building and their right to have visitors unmolested by the "guards”. The complete failure to do the mandated repairs according to the schedule and the creation of new unsafe conditions establishes beyond question the willfulness of the owners’ conduct. The performance of many repairs which were not required by the orders at the expense of the mandated items further supports that conclusion. There is no doubt that the acts of the respondents have delayed, hindered, impaired and impeded the rights of the petitioners in this proceeding.

The court finds, beyond a reasonable doubt, that the respondents are each guilty of both criminal and civil contempt for their willful disobedience of the court’s orders of October 18, November 15 and November 27, 1985. (See, Judiciary Law § 750 [A] [3]; Matter of McCormick v Axelrod, 59 NY2d 574, 583.)

THE APPROPRIATE PENALTY

CIVIL CONTEMPT

The parties agree that the petitioners have not proven any actual damages as a result of the contempt; therefore, their recovery of a fine is limited. Judiciary Law § 773 provides, in pertinent part: "Where it is not shown that such an actual loss or injury has been caused, a fine may be imposed, not exceeding the amount of the complainant’s costs and expenses, and two hundred and fifty dollars in addition thereto, and must be collected and paid, in like manner.”

The reported decisions do not provide clear guidance as to the manner of computing the fine, that is whether separate fines are payable for each act of contempt and whether the same amounts are due to each petitioner. The distinction between civil and criminal contempt provides a starting point for analysis. The Court of Appeals recently held that a civil contempt penalty is imposed "to compensate the injured private party for the loss of or interference with that right (State of New York v Unique Ideas, 44 NY2d 345).” (Matter of McCormick v Axelrod, supra, at 583.) Thus, notwithstanding the willfulness of the acts, a civil contempt fine is limited to [874]*874damages "sufficient to indemnify the aggrieved party”. The courts have long held that in the absence of proof to the contrary "the actual damages must be regarded as not exceeding two hundred and fifty dollars” (Socialistic Coop. Pub. Assn. v Kuhn, 164 NY 473, 475 [1900]). (Indeed, the $250 contempt penalty first was set in 1829. See, 2 Rev Stat [2d ed], part III, ch III, tit I, § 11, at 207.)

The Appellate Term in this Department has held that multiple $250 penalties cannot be imposed where there is no proof of actual damages. The court has refused to allow multiplication of a fine by the number of separate housing code violations to preclude "awarding exemplary damages in a situation where compensatory damages have not been proven —a result at odds with the concept of civil contempt” (S.I. Realty Holding Corp. v Harris, NYLJ, Feb. 14, 1986, at 13, col 1; Department of Hous. Preservation & Dev. v Swett, NYLJ, June 11, 1984, at 7, col 3). It is not "compensatory” to multiply the fine by each of the four orders; similarly, it is not "compensatory” to multiply the fine by the number of sections of the orders which were violated. (See, State of New York v Unique Ideas, 44 NY2d 345, 350.) There is no doubt that the acts of the owners constitute a single breach of the court’s orders requiring repairs. (See, People v Chestnut, 26 NY2d 481, 491-492; People v Riela, 7 NY2d 571, 576.)

While the concept that $250 represents limited compensatory damages might lead to the conclusion that a separate $250 fine should be paid to each injured party (Santana v 144th St. Holding Corp., NYLJ, May 14, 1984, at 13, col 3 [App Term, 1st Dept]), the statutory language leads to the opposite result. Judiciary Law § 773 provides that in the case of proof of actual damages "a fine, sufficient to indemnify the aggrieved party” must be imposed; the emphasis is on the "aggrieved party”. Where no actual damages are shown, the fine to be imposed may not exceed expenses "and two hundred and fifty dollars in addition thereto”; thus the total added fine may not exceed $250. That result is consistent with State of New York v Unique Ideas (supra) and S.I. Realty Holding Corp. v Harris (supra) which emphasize that exemplary damages are prohibited under section 773. Accordingly, the court will impose a single $250 fine to be paid to the petitioners by the owners jointly and severally (see, Socialistic Coop. Pub. Assn. v Kuhn, supra).

Since petitioners are limited to a $250 fine, they are entitled to recover costs and expenses, including the fees reasonably [875]

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Bluebook (online)
134 Misc. 2d 871, 513 N.Y.S.2d 620, 1987 N.Y. Misc. LEXIS 2122, Counsel Stack Legal Research, https://law.counselstack.com/opinion/gregori-v-ace-318-corp-nycivct-1987.