Headsup Penny, Inc. v. City of Newburgh

CourtDistrict Court, S.D. New York
DecidedMay 4, 2022
Docket7:22-cv-02796
StatusUnknown

This text of Headsup Penny, Inc. v. City of Newburgh (Headsup Penny, Inc. v. City of Newburgh) is published on Counsel Stack Legal Research, covering District Court, S.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Headsup Penny, Inc. v. City of Newburgh, (S.D.N.Y. 2022).

Opinion

UNITED STATES DISTRICT COURT USDC SDNY SOUTHERN DISTRICT OF NEW YORK DOCUMENT ELECTRONICALLY FILED HEADSUP PENNY, INC., DOC #: DATE FILED: _ 5/4/2022 Plaintiff, 22 CV 02796 (NSR) CITY OF NEWBURGH and WAYNE OPINION & ORDER VRADENBURGH, Defendants.

NELSON S. ROMAN, United States District Judge: Plaintiff Headsup Penny, Inc. (“Plaintiff”) brings this action pursuant to 42 U.S.C. § 1983 (“Section 1983”) alleging violations of the Fourteenth Amendment against the City of Newburgh (the “City”) and Wayne Vradenburgh (together “Defendants”). (ECF No. 1.) Presently before the Court is Plaintiffs motion for a preliminary and temporary restraining order. (ECF No. 15.) For the following reasons, Plaintiff's motion is DENIED. BACKGROUND The following facts are taken from the parties’ submissions. See Park Irmat Drug Corp. v. OptumRx, Inc., 152 F. Supp. 3d 127, 132 (S.D.N.Y. 2016) (“In deciding a motion for preliminary injunction, a court may consider the entire record including affidavits and other hearsay evidence.”). I. The City of Newburgh’s City Code The City of Newburgh provides water pursuant to its City Code. Section 293-25(A) states: [w]henever a consumer neglects or refuses to pay a bill rendered for water consumed or commits any violation of § 293-19 of this chapter, the Superintendent may discontinue service to the property. Service shall not be discontinued until at least 15 days’ written notice of the intention to discontinue service has been served on the consumer and the property owner, either personally or by taking the same in a postpaid wrapper to the address of such person. If the property consists in whole

or in part of a dwelling or dwellings, notice shall also be given to the occupants by posting a copy of the notice at the doorway of the premises or, in the case of a multiple dwelling, in the public corridor or hallway on each floor of said premises.

City Code § 293-25(A) (emphasis added). The Code further states “[a]ny consumer, owner or residential occupant may request a hearing from the Superintendent on the discontinuance of service by applying to the Superintendent in writing within five days of the notice.” City Code § 293-25(B) (emphasis added). “Consumer” is defined as “[t]he party of a premises contracting for service to a premises, the owner or the legally appointed agent of an owner of premises connected with the distribution system.” City Code § 293-1. II. Headsup Penny Plaintiff is a domestic corporation and a commercial tenant of real property located at 392 North Montgomery Street Extension, Newburgh, New York (the “Property”). (Affidavit of Gary Rausenberger (“Rausenberger Aff.”) ECF No. 17 ¶ 3.) Prior to June 28, 2019, the Property was owned by Plaintiff. (Id. ¶ 5.) On or about June 28, 2019, Plaintiff sold the Property, and then leased it back from the landlord. (Id. ¶¶ 6-7.) The Property contains two warehouses. (Id. ¶ 8.) Plaintiff subleases space within the two warehouses to commercial subtenants. (Id. ¶ 10.) The lease obligates Plaintiff to pay for utility services, including water. (Id. ¶ 13.) Water service for the two warehouses for drinking, sinks, and toilets is served by two domestic wells on the Property. (Id. ¶ 14.) The fire suppression systems for the two warehouses are served from water supplied by the City from one of its water mains which are part of the City’s water system. (Id. ¶ 15.) The City’s water main which serves the Property is in the Town of Newburgh. (Id. ¶ 18.) In May of 2019, prior to Plaintiff selling the subject premises to the landlord, the City commenced a lawsuit against Plaintiff concerning the exact amount of money it owed to the City for providing water services to the Property. (Id. ¶ 20.) That lawsuit was settled by Plaintiff paying $23,518.88 to the City, and the City provided a general release to Plaintiff. (Id. ¶¶ 21-22.) After Plaintiff sold the Property to the landlord, Plaintiff continued to use the water service supplied by the City for the fire suppression systems. (Id. ¶ 23.)

On or about July 9, 2021, postings titled “Notice of Discontinuance” were affixed around the Property by the City. (Id. ¶ 24; Ex. 2.) The postings were addressed to Plaintiff’s landlord. (Id. ¶ 25; Ex. 2.) The postings stated “[n]otice is hereby given that the City of Newburgh (“City”) intends to discontinue water service to the [the Property] for failure to pay bills for water services provided by the City and for violations of §293-19 of the City of Newburgh Code of Ordinances . . . the City will discontinue water service to the Property by close of business on Friday, July 31, 2021[.]” (Id. ¶ 26; Ex. 2.) The postings further stated: You may request a hearing from the Water Superintendent regarding the discontinuance of water service to the Property by applying to the Water Superintendent in writing within five days of your receipt of this notice. Your hearing shall then be held within five days of the Water Superintendent’s receipt of said notice. Please be advised that the Water Superintendent shall conduct the hearing, and the Water Superintendent’s determination shall be final. You may halt the discontinuance of service by paying all arrearages and current charges due on the property and/or by complying with all provisions of §293-19 of the City of Newburgh Code of Ordinances to the satisfaction of the Water Superintendent.

(Id. ¶ 28; Ex. 2.) Prior to the date of the postings, Plaintiff had not received a copy of any water bill from the City or from the landlord. (Id. ¶ 30.) Because the lease requires Plaintiff to pay for its water service, Plaintiff paid all open arrearages on July 29, 2021. (Id. ¶ 33.) No water service was cutoff on the given date. (Id. ¶ 35.) Then, on or about August 16, 2021, water service to the Property was shut off. (Id. ¶ 36.) Two days later, Plaintiff received a letter from the City of Newburgh’s Office of the Corporation Counsel, stating that City staff were at the Property on August 12, 13, and 16 to shut off the water due to “the discovery of, and lack of a meaningful response to, a number of deficiencies in the water supply systems to the buildings on the premises that pose a threat to the City of Newburgh’s water system.” (Id. ¶ 37, Ex. 3.) The letter also provided a list of conditions that the City would

require prior to water service being restored. (Id. ¶ 39, Ex. 3.) On or about September 2, 2021, Plaintiff instituted an Article 78 proceeding in the Supreme Court - Orange County seeking an Order and Judgment Pursuant to Article 78 of the Civil Practice Law and Rules (1) directing Defendants restore Plaintiff’s water service; and, (2) directing Defendants to grant Plaintiff a hearing as to whether Defendants can discontinue water service to Plaintiff’s premises in accordance with Section 293-25 of the City Code of the City of Newburgh after proper notice is given to Plaintiff. (Id. ¶ 44, Ex. 4.) On September 7, 2021, the Supreme Court - Orange County entered a temporary restraining order compelling the City to restore water while the Article 78 Petition was pending. (Id. ¶ 46.) By Decision and Order dated February 3, 2022, the Supreme Court - Orange County, agreed with the City that Plaintiff lacked standing to

request a hearing prior to terminating Plaintiff’s water service, and therefore the Court dismissed Plaintiff’s Article 78 Petition. (Id. ¶ 47, Ex. 8.) Plaintiff appealed the Supreme Court’s Decision to the Appellate Division, Second Department, and moved for re-argument before the trial court. (Id. ¶ 48.) The City then restored water service to the Property. (Id. ¶ 49.) Thereafter, the Appellate Division, Second Department denied Plaintiff injunctive relief during the pendency of Plaintiff’s appeal. (Id.

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Bluebook (online)
Headsup Penny, Inc. v. City of Newburgh, Counsel Stack Legal Research, https://law.counselstack.com/opinion/headsup-penny-inc-v-city-of-newburgh-nysd-2022.