In Re Griggsby

404 B.R. 83, 2009 Bankr. LEXIS 791, 2009 WL 1027546
CourtUnited States Bankruptcy Court, S.D. New York
DecidedApril 17, 2009
Docket19-10336
StatusPublished
Cited by12 cases

This text of 404 B.R. 83 (In Re Griggsby) is published on Counsel Stack Legal Research, covering United States Bankruptcy 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
In Re Griggsby, 404 B.R. 83, 2009 Bankr. LEXIS 791, 2009 WL 1027546 (N.Y. 2009).

Opinion

MEMORANDUM OPINION SUSTAINING OBJECTION TO NOTICE OF COMPLIANCE AND GRANTING LIFT-STAY MOTION

MARTIN GLENN, Bankruptcy Judge.

940 St. Nicholas, LLC (“940 St. Nicholas” or “Landlord”), filed a Motion to Vacate the Automatic Stay in this case under chapter 13 (“Lift-Stay Motion”) (ECF Doc. No. 13), to permit it to execute a warrant of eviction obtained pursuant to a judgment of possession against the debt- or, Beverly C. Griggsby (“Griggsby” or “Debtor”), in Civil Court on January 5, 2007, before this chapter 13 case was filed. The judgment of possession and warrant of eviction were based on so-called “Col-lyer Conditions” in Griggsby’s residential apartment. The Landlord also filed an Objection to the Debtor’s certification pursuant to 11 U.S.C. § 362(0(1) (“Objection”)(ECF Doc. No. 11). The Court heard argument on the Objection and the Lift Stay Motion on April 2, 2009. At the conclusion of the hearing, the Court ruled from the bench, sustaining the Objection and granting the LifNStay Motion. A written order was entered that same day lifting the automatic stay. (ECF Doc. No. 16.) In its bench ruling, the Court stated that because of the novel issues involved in this matter, a written Opinion would follow explaining the Court’s reasoning. For the reasons explained below, the Court concludes that where a default giving rise to a prepetition judgment of possession could not be cured by the payment of money alone, the automatic stay under Bankruptcy Code § 362 does not operate as a stay of any eviction proceeding and the stay cannot be reinstated by the debtor under Bankruptcy Code § 362(i).

On April 10, 2009, Debtor filed an application by order to show cause seeking to reinstate the automatic stay. The supporting affidavits rehash the issues presented to the Court at the April 2, 2009 hearing. The application is really a request for reconsideration of the April 2, 2009 bench ruling and Order lifting the automatic stay entered on that day. However viewed, the application to reinstate the stay fails to advance grounds supporting any different result.

BACKGROUND

On February 21, 2009, Debtor filed a voluntary petition commencing a chapter *86 13 bankruptcy case. 1 Prior to filing her bankruptcy case, Griggsby resided as a tenant in Apartment 51 in 940 St. Nicholas Avenue, New York, N.Y. (the “Apartment”) pursuant to a rent-stabilized lease with the Landlord’s predecessor. On or about June 22, 2006, 940 St. Nicholas served a notice of termination on Griggs-by, alleging that she was responsible for excessive accumulated debris posing a health and fire risk (“Collyer Conditions”). 2 The Landlord subsequently commenced a Collyer-type nuisance holdover proceeding in the Civil Court of the City of New York, County of New York (“Civil Court”), Index No. L & T 81890/06.

On January 5, 2007, after a hearing, the Civil Court entered an order (the “2007 Order”) awarding a final judgment of possession to the Landlord. The judgment rested upon the presence of the Collyer Conditions and arrears owed by Griggsby in the amount of $4,640.24 for use and occupancy through January 5, 2007. The Order indicated that the Civil Court would issue a warrant of eviction forthwith but stayed the warrant’s execution to permit Griggsby to cure the defaults by a January 16, 2007 deadline. Griggsby’s appeal of the final judgment was dismissed for failure to perfect. On October 17, 2008, after a multi-day hearing, the Civil Court entered an Order (the “2008 Order”), finding that Griggsby had failed to cure the Col-lyer Conditions and authorizing 940 St. Nicholas to execute the warrant of eviction. The court’s written opinion did not indicate whether Griggsby had cured the outstanding money arrears, but it is clear from the opinion that the Collyer Conditions were the basis for the court permitting Griggsby’s eviction to go forward. 3 Griggsby failed to timely appeal the 2008 Order. The court issued the warrant of eviction on December 10, 2008. An evie *87 tion scheduled for February 23, 2009 was stayed as a result of Debtor’s bankruptcy case.

As explained below, pursuant to Bankruptcy Code § 362(b)(22), the automatic stay would not apply as a bar to the Landlord’s efforts to evict the Debtor because the state court judgment of possession was obtained before the Debtor filed her chapter 13 petition, unless the Debtor was able successfully to invoke § 362(i) by depositing 30 days’ post-petition rent with the Clerk of the Court and by filing a certification required by § 362(Z )(1). The Debtor timely deposited the funds and also filed a certification. On February 23, 2009, the Clerk entered a notice of Debtor’s compliance and intent to cure the prepetition judgment of possession (“Compliance Notice”) (ECF Doc. No. 7). On March 6, 2009, 940 St. Nicholas filed an Objection to Debtor’s certification and refused to accept a tender of the deposit.

The Landlord argues that § 362(i) does not apply in this case because the outstanding judgment of possession rests upon Debtor’s non-monetary default — failing to cure the Collyer Conditions. The Landlord maintains that § 362(i) applies by its terms only to a curable monetary default that is present at the commencement of a debtor’s bankruptcy case. Because the judgment of possession and warrant of eviction were based on non-monetary obligations, the argument goes, § 362(Z) is not available to the Debtor. The Landlord further urges that even if § 362(i) did apply in this ease, the Debt- or’s right to cure the Collyer Conditions expired upon entry of the 2008 Order.

The motion to lift the stay claims that the Landlord lacks adequate protection under § 362(d)(1) because the Collyer Conditions remain in the Apartment. The Landlord also contends that the Debtor’s estate lacks a property interest in the Apartment within the meaning of Bankruptcy Code § 541 because, pursuant to § 749 of the New York Real Property Actions and Proceedings Law (“RPAPL”), the issuance of the warrant of eviction cutoff the Debtor’s interest in the Apartment.

DISCUSSION

A. BAPCPA Limits Application of the Automatic Stay in Eviction Proceedings

Section 362(b)(22), added to the Bankruptcy Code in 2005 as part of the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (“BAPCPA”), provides that the automatic stay pursuant to § 362(a)(3) does not apply to the “continuation of any eviction, unlawful detainer action, or similar proceeding by a lessor against a debtor involving residential property in which the debtor resides as a tenant under a lease or rental agreement and with respect to which the lessor has obtained before the date of the filing of the bankruptcy petition, a judgment for possession of such property against the debt- or.” 11 U.S.C. § 362(b)(22). Section 362(i) provides a limited exception to the strictures of § 362(b)(22). The automatic stay does apply for a 30-day period after the filing of the bankruptcy petition if

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Cite This Page — Counsel Stack

Bluebook (online)
404 B.R. 83, 2009 Bankr. LEXIS 791, 2009 WL 1027546, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-griggsby-nysb-2009.