Himmel v. Chase Manhattan Bank

47 Misc. 2d 93, 262 N.Y.S.2d 515, 1965 N.Y. Misc. LEXIS 1598
CourtCivil Court of the City of New York
DecidedAugust 9, 1965
StatusPublished
Cited by15 cases

This text of 47 Misc. 2d 93 (Himmel v. Chase Manhattan Bank) 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
Himmel v. Chase Manhattan Bank, 47 Misc. 2d 93, 262 N.Y.S.2d 515, 1965 N.Y. Misc. LEXIS 1598 (N.Y. Super. Ct. 1965).

Opinion

Maurice Wahl, J.

This is an article 7-A proceeding grounded on the new legislative enactment (L. 1965, ch. 909), effective July 17, 1965, when the Governor approved Print No. 7324 introduced by Senator Wilson. This law amends the Real Prop[94]*94erty Actions and Proceedings Law and the New York City Civil Court Act, in relation to special proceedings by tenants of multiple dwellings in the City of New York for a judgment directing deposit of rents and application thereof under the direction of the court through a court-appointed administrator, where conditions exist dangerous to life, health or safety.

At the outset, this court finds and it is so admitted by both the attorney and the special counsel for the Chase Manhattan Bank, which is attacking the constitutionality of this law, that they did not notify the Attorney-General of the State of New York. Section 71 of the Executive Law requires the Attorney-General to appear, after order made, in support of the constitutionality of such attacked statute. CPLR 1012 (subd. [b]) mandates that the court shall notify the Attorney-General, who shall be permitted to intervene in support of its constitutionality. Thus while it would appear that the bank’s legal representatives should have complied with these relevant provisions to properly have this issue determined, they omitted to so do. The court has on its own motion done so after its decision hereinafter set forth upholding the statute.

The building involved herein is located at 511 East 80th Street, in the Borough of Manhattan, City of New York, and was completed about November, 1963; and it was to be a fine and elegant 14-story apartment residence for rental to 124 tenants, as dwelling units with above-average comfort. The first mortgagee was the Chase Manhattan Bank. The owner met financial difficulties with the result that in 1964 there was a default under the terms of the mortgage and the Chase Manhattan Bank instituted a foreclosure proceeding. In June, 1964, the Chase Manhattan Bank obtained an assignment of rents and took over the operation and management of the premises. At that time, the Chase Manhattan Bank designated Brown, Harris, Stevens, Inc. as its managing agent.

On May 1, 1965, a judgment of foreclosure and sale was entered. On June 24, 1965, the foreclosure sale was held, and the property was purchased by the Chase Manhattan Bank. At the time of such sale, the approximate amount due the Chase Manhattan Bank on its judgment of foreclosure was $2,799,688.33, with interest from April 5, 1965, together with costs, disbursements and allowances.

It appears that from the very beginning of their occupancies the tenants in the building had various complaints:

1. The central air-conditioning system did not appear to be of sufficient capacity to adequately air-condition the building, with the result that the system fell into disrepair regularly. [95]*95Ample proof on this score was submitted by the tenants in their proceedings.

2. The water supply in the building appeared to be contaminated, with a heavy-like sediment as a result of a corrosion condition within the hot-water system in the building.

3. The incinerator shaft in the building appeared to have insufficient insulation, in that it created an undue amount of heat, smoke, fumes, and odors which seeped into the public incinerator rooms and in the adjoining apartments.

4. The plumbing fixtures drained either very poorly or not at all.

5. The ventilators did not operate properly.

6. The elevators in the building were frequently out of order and not available for tenants’ use.

7. The laundry equipment in the basement was regularly out of order and unavailable for tenants’ use.

8. Many tenants complained of an infestation of rodents throughout the building.

9. The security system in the building was inadequate and resulted in a substantial number of instances of burglary, vandalism and loitering.

As a result of these problems, a tenants’ committee was organized. The committee decided to withhold the payment of rent, and various summary proceedings were commenced by the landlord. On the return date of the said summary proceedings, a petition under the new article 7-A of the Eeal Property Actions and Proceedings Law was presented to the court, on behalf of many of the tenants. The caption in the proceeding lists over 70 of such tenants.

The preamble (§ 1) of the statute states the legislative intent to judicially police the conditions dangerous to life, health or safety of the occupants of any such multiple dwelling, without regard to the age of the structure, location or area of location of any such multiple dwelling.

The threshold question is whether this statute would apply as against accrued and past-due rents prior to July 17,1965, the statute’s effective date.

This is a remedial statute, not unlike CPLR 302 and section 404 of the New York City Civil Court Act, the “long arm” statutes concerning personal jurisdiction. As to those statutes our highest court has affirmatively expressed itself (Simonson v. International Bank, 14 N Y 2d 281, 290) that “ CPLR 302 has retroactive effect to the extent of embracing suits instituted after its effective date but based on previously accrued causes of action.” That determination was reaffirmed by Judge Furo [96]*96in Longines-Wittnauer Watch Co. v. Barnes & Reinicke (15 N Y 2d 443, 453) decided May 27, 1965 saying: U and no reason has been shown to cause us to alter our opinion.”

Generally the retroactive application of similar remedial statutes has been upheld as constitutional (Simonson v. International Bank, supra; Longines-Wittnauer Watch Co. v. Barnes & Reinicke, supra; McGee v. International Life Ins. Co., 355 U. S. 220, 224; Nelson v. Miller, 11 Ill. 2d 378, 382-383; and most recently in United States v. First Nat. City Bank, 379 U. S. 378).

Article 7-A of the Real Property Actions and Proceedings Law is clearly remedial as it opens up this judicial forum to protect the rights of tenants whose multiple dwelling occupancies are within the purview of the legislative mandate, endangering life, health or the safety of the occupants thereof. No substantive right or obligation is impaired, nor does the court perceive that any such impairment may occur. Under section 1446-a of the Civil Practice Act, now repealed, and newly enacted as section 755 of the Real Property Actions and Proceedings Law, the court was and is empowered to direct rent deposits where nuisances or violations have not been removed or necessary repairs have not been made by the landlord; and such rent deposits shall not be released except upon court order, presumably upon a showing of removal of violations or curing of the defects; meanwhile staying the eviction proceedings.

Article 7-A enlarges this remedy by permitting one third of the tenants in the nature of a class action (presumably in the Legislature’s wisdom to prevent individual nuisance proceedings) to pray for such relief even without a departmental violation, where dangerous to life, health or the safety of the occupants.

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Bluebook (online)
47 Misc. 2d 93, 262 N.Y.S.2d 515, 1965 N.Y. Misc. LEXIS 1598, Counsel Stack Legal Research, https://law.counselstack.com/opinion/himmel-v-chase-manhattan-bank-nycivct-1965.