Gur Assoc. LLC v. Convenience on Eight Corp.

2023 NY Slip Op 23413
CourtCivil Court Of The City Of New York, New York County
DecidedDecember 21, 2023
StatusPublished

This text of 2023 NY Slip Op 23413 (Gur Assoc. LLC v. Convenience on Eight Corp.) is published on Counsel Stack Legal Research, covering Civil Court Of The City Of New York, New York County primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Gur Assoc. LLC v. Convenience on Eight Corp., 2023 NY Slip Op 23413 (N.Y. Super. Ct. 2023).

Opinion

Gur Assoc. LLC v Convenience on Eight Corp. (2023 NY Slip Op 23413) [*1]
Gur Assoc. LLC v Convenience on Eight Corp.
2023 NY Slip Op 23413
Decided on December 21, 2023
Civil Court Of The City Of New York, New York County
Tsai, J.
Published by New York State Law Reporting Bureau pursuant to Judiciary Law § 431.
This opinion is uncorrected and subject to revision before publication in the printed Official Reports.


Decided on December 21, 2023
Civil Court of the City of New York, New York County


Gur Associates LLC, Petitioner,

against

Convenience on Eight Corporation d/b/a AM PM MARKET, Respondent/Tenant,
 and BING BONG CANDY SHOP INC., XYZ Corp., JOHN DOE and JANE DOE, Respondents/Undertenants.




Index No. LT-317980-23/NY

Law Office of Marc Scolnick, P.C. (Marc Scolnick, of counsel), New York City, for respondent Convenience on Eighth d/b/a AM PM Market, sued herein as Convenience on Eight Corporation d/b/a AM PM Market

Mark S. Friedlander, New York City, for petitioner.
Richard Tsai, J.

In this commercial holdover proceeding, petitioner Gur Associates LLC (landlord) seeks a judgment of possession and a money judgment from respondents based on illegal use of the premises for the unlicensed retail sale of cannabis. Having failed to timely answer the petition, respondent Convenience on Eight Corporation DBA AM PM Market (tenant) now moves to dismiss the proceeding, on the grounds that the petition fails to state a cause of action for [*2]eviction based on illegal use, lack of personal jurisdiction, and waiver by acceptance of rent.

Landlord opposes the motion.

BACKGROUND

It is undisputed that tenant entered into possession of the premises pursuant to a written lease dated January 18, 2023 (petition ¶ 2). The subject premises are described as: "All rooms, divisions, and parts of the rooms of the North Store on the ground floor located at the premises commonly known as 584 Eighth [sic], New York, New York 10018 ('Premises')" (id. ¶ 3). Landlord asserts that, pursuant to the lease, the Premises are to be used "as a first class convenience store selling snacks, drinks, chips, candies, lottery tickets, tobacco and ancillary items provided such use complies with any and all zoning laws, ordinances and other laws affecting the Premises and the Certificate of Occupancy and for no other purpose" (id. ¶ 4).

Less than a year after this tenancy began, landlord commenced the instant holdover proceeding, alleging that tenant has "illegally allowed" respondent undertenant Bing Bong Candy Shop Inc. (Bing Bong) "to take possession of the Premises without the Petitioner's permission or consent," and that, since about April 2023, Bing Bong "has been selling marijuana, which is a controlled substance, without a valid license to sell such controlled substance" as well "hemp and flavored nicotine products without a proper license," in violation of the lease and "local, state and federal laws" (id. ¶¶ 5-6).

Annexed to the petition was a letter from the District Attorney of New York County, which stated, in relevant part, "We have received reports through concerned residents that Bing Bong may be in violation of city laws that prohibit the sale of flavored nicotine products, and may be selling cannabis and/or hemp products without a license, in violation of the state Cannabis Law" (NYSCEF Doc. No. 4 [Exhibit B to the petition]).

According to an affidavit of service filed with the court, landlord's process server delivered a true copy of the notice petition and petition, for each respondent, to an individual employed at the premises named "Mohamed Heariro" on September 20, 2023 at 4:27 PM (NYSCEF Doc. No. 8 [affidavit of service]). Mohamed Heariro is described as a 29-year-old male with brown skin and black hair standing approximately 5 feet, 7 inches and weighing approximately 150 pounds (id.). The affidavit of service further states that copies of the petition and notice of petition were sent to the premises on September 21, 2023 via both certified mail and regular first class mail for each respondent (id.).

On October 5, 2023 at 11:00 AM, the return date on the notice of petition, counsel for landlord appeared before this court and respondents failed to appear (FTR, courtroom 772, at 12:21 PM). Accordingly, respondents' default was taken on the record, and the matter was adjourned for an inquest hearing on October 24, 2023 at 11:00 AM.

On October 20, 2023, counsel for respondent "Convenience on Eight [sic] D/B/A AM PM Market" filed a notice of appearance, along with a motion to dismiss. Tenant argued, among other things, that the court lacked personal jurisdiction over tenant and that petition failed to state a cause of action (Tenant's memorandum of law in support of motion to dismiss, at 14 [NYSCEF Doc. No. 14]).

On October 24, 2023, the date of the inquest, counsel for the parties appeared before this court on the record (FTR, courtroom 772, at 11:53 AM). Over petitioner's objection, this court set a briefing schedule for tenant's motion and adjourned the inquest and the motion to [*3]November 9, 2023 at 11:00 AM.

On November 9, 2023, another judge of the Civil Court marked the motion as submitted and referred tenant's motion to this court. Oral argument was held before this court on the digital record on December 8, 2023 (FTR, courtroom 772, at 2:20—2:55 PM).


DISCUSSION

As a threshold matter, tenant's motion to dismiss was untimely filed after tenant defaulted in answering (see Clinkscale v Sampson, 74 AD3d 721, 722 [2d Dept 2010] ["Since no extension of time to make the motion to dismiss was requested by the defendants or granted by the court . . . the motion should have been denied as untimely"]). However, on October 24, 2023, when this court questioned tenant's counsel on whether tenant could move to dismiss the petition after it had defaulted in answering the petition, tenant's counsel asked that the motion to dismiss also be deemed a motion to vacate its default in answering, which was granted.


I. The branch of tenant's motion seeking dismissal of the complaint

Tenant argues that this proceeding should be dismissed because: (1) landlord failed to properly serve the petition and notice of petition on tenant and thus the court lacks personal jurisdiction over tenant; (2) the court also lacks jurisdiction over tenant because landlord's notice to cure was defective and because tenant was not served with a notice of termination prior to the commencement of this proceeding; (3) the petition fails to make sufficiently specific allegations to sustain an eviction based on "illegal use" of the premises pursuant to Real Property Law § 231; and (4) landlord waived any alleged default of the lease by accepting rent from tenant.


A. Service of the Petition and Notice of Petition

A process server's affidavit of service gives rise to a presumption of proper service (see Machovec v Svoboda, 120 AD3d 772, 773 [2d Dept 2014]; Stephan B. Gleich & Assoc. v Gritsipis, 87 AD3d 216, 220-221 [2d Dept 2011] ).

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2023 NY Slip Op 23413, Counsel Stack Legal Research, https://law.counselstack.com/opinion/gur-assoc-llc-v-convenience-on-eight-corp-nycivctny-2023.