Katonah Realties, Inc. v. Wasserman

98 Misc. 2d 630, 414 N.Y.S.2d 234, 1978 N.Y. Misc. LEXIS 2891
CourtCivil Court of the City of New York
DecidedDecember 29, 1978
StatusPublished
Cited by1 cases

This text of 98 Misc. 2d 630 (Katonah Realties, Inc. v. Wasserman) 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
Katonah Realties, Inc. v. Wasserman, 98 Misc. 2d 630, 414 N.Y.S.2d 234, 1978 N.Y. Misc. LEXIS 2891 (N.Y. Super. Ct. 1978).

Opinion

OPINION OF THE COURT

Benjamin F. Nolan, J.

In this nonpayment summary proceeding, tenants, appearing pro se, filed with the clerk an oral answer of "violations” pursuant to sections 732 and 743 of the Real Property Actions and Proceedings Law, but then failed to appear on the trial date, whereupon a final judgment for rent and possession was entered against them. Thereafter, now represented by counsel, tenants moved by order to show cause with a stay to vacate the judgment and have the proceeding restored to the Trial Calendar. Tenants’ underlying affidavit alleged only: "We are asking for dismissal of the money judgment because there is no subject matter jurisdiction over the proceeding due to the fact that the petition is verified by the agent for petitioner and the R.P.A.P.L. no longer allows for such.” This time, landlord defaulted on the return date, but thereafter moved for reargument. The motion for reargument is granted, and upon reargument, is decided as follows.

The Validity of the Verification.

Effective July 1, 1977, chapter 247 of the Laws of 1977 created a new opening paragraph of section 741 of the Real Property Actions and Proceedings Law, which now reads: "The petition shall be verified by the person authorized by section [721 of the Real Property Actions and Proceedings Law] to maintain the proceeding; or by a legal representative, attorney or agent of such person pursuant to subdivision (d) of section [3020] of the civil practice law and rules [CPLR]”.

CPLR 3020 (subd [d]) provides in pertinent part that:

"The verification of a pleading shall be made by the affidavit of the party * * * except:
"1. if the party is a domestic corporation, the verification shall be made by an officer thereof and shall be deemed a verification by the party * * *
"3. * * * or if all the material allegations of the pleading are within the personal knowledge of an agent or the attorney, the verification may be made by such agent or attorney.”

The caption in the notice of petition herein shows the [632]*632petitioner to be Katonah Realties, Inc., and is perfectly legal in all respects both in form and content. The caption of the petition shows the petitioner to be the corporation but its opening sentence alleges that it is the petition of Marvin A. Bass as the one "authorized to institute and maintain this proceeding and (who) is the attorney * * * of katonah real-ties, inc.”. The petition is verified by Marvin A. Bass as secretary of Katonah Realties, Inc. The verification here is clearly proper, being made by the secretary of the petitioner corporation.

Recently, the Appellate Term, First Department, in Trustees of C.I. Mtge. Group v NYILR Ltd. (NYLJ, Dec. 8, 1978, p 6, col 3) said: "The verification in issue, made by the vice-president of landlord’s agent is without defect (See Rasch 2d, sec. 1253). Read together, RPAPL 741, as amended effective July 1, 1977, and CPLR 3020 (d) (3) provide authority for an agent of a landlord-foreign association, with personal knowledge of the material allegations of the pleadings — even though unable to initiate the proceeding — to verify the petition on behalf of the person authorized by statute to bring the proceeding . (RASCH 2d supp., sec. 1266).” (Emphasis supplied.) The most significant part of the aforesaid expression of very recent appellate interpretation is: "even though unable to initiate the proceeding”. This is particularly significant because the verification here, made by Marvin Bass, as secretary of the corporation, under CPLR 3020 (subd [d], par 1) is far more statutorily compatible than was the verification of the agent in that proceeding under CPLR 3020 (subd [d], par 3).

Whether the Petition was Brought by an Improper Party.

It is clear that the petition herein should have recited that it was brought by the corporation instead of reciting that it was brought by Marvin Bass. Although this petition has not been attacked on the grounds that it was brought by an improper party, the defect being obvious on the face of the petition, the court cannot ignore it. The resultant issue is whether the defect is amendable, whether it can be the subject of waiver or estoppel, or, on the other hand, whether the petition must be dismissed and the judgment vacated because of the defect.

Simultaneously with the creation of a new opening paragraph of section 741 of the Real Property Actions and Proceedings Law, the Legislature (via the same chapter 247 of the [633]*633Laws of 1977) repealed subdivision 8 of section 721 of the Real Property Actions and Proceedings Law, which had permitted "[t]he legal representative, attorney, agent or assignee of the landlord” to recover possession of real property. Since July 1, 1977, the effective date of these amendments, decisions interpreting the amendments have divided, some on the side of strict construction, and others on the side of liberal construction. The strict constructionists have interpreted defects in the petition to be nonaméndable subject matter insufficiencies (Lazarus v Alexander, NYLJ, June 20, 1978, p 12, col 2; Zisser v Bronx Cigar Corp., 91 Misc 2d 1025; Sollar v Bloom, 91 Misc 2d 884; Freeman v Deacon, NYLJ, March 30, 1978, p 10, col 6), while the liberal constructionists have found them to be amendable. (Trustees of C.I. Mtge. Group v NYILR Ltd. supra; McClelland v Robinson, 94 Misc 2d 312; Presidential Towers Residence v Small, NYLJ, July 3, 1978, p 12, col 1; Oceangate Assoc, v Zingale, NYLJ, June 22, 1978, p 13, col 3; Gamliali v Tower of David, 94 Misc 2d 763.) The Appellate Term, Second Department, in Lazarus v Alexander (supra), dismissed the petition because it was brought by an attorney, and cited approvingly both Zisser v Bronx Cigar Corp. (supra) and Sollar v Bloom (supra); but, it said no more. Whether nevertheless the defect was remediable was not addressed, perhaps, because it was raised for the first time on appeal and at a time when remedy would be ineffectual. Besides, it was an example of the most extreme abuse of the amendment to section 721 of the Real Property Actions and Proceedings Law, being clearly the proceeding of the attorney as a party petitioner.

Whether the Petition Defect is Remediable by Amendment.

In determining whether a defect in a petition may be amended or be the subject of waiver or estoppel, or, on the other hand, be vulnerable to attack for want of subject matter jurisdiction, the preliminary question is whether the court has jurisdiction over this type of case, not whether it has jurisdiction over the particular case. In a learned discussion of this issue, in McClelland v Robinson (94 Misc 2d 312, 314-315, supra), citing Matter of Rougeron (17 NY2d 264, 271), Judge Seymour Schwartz concluded: "Judged by this standard this court had jurisdiction over this type of landlord-tenant proceeding. The petition gave fair notice of the interest of the parties, the type of proceeding, the relief sought and there was [634]*634a fair trial. Tenants waived any defense of lack of subject-matter jurisdiction by proceeding to trial and failing to raise the issue until after the court made its decision.”

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Bluebook (online)
98 Misc. 2d 630, 414 N.Y.S.2d 234, 1978 N.Y. Misc. LEXIS 2891, Counsel Stack Legal Research, https://law.counselstack.com/opinion/katonah-realties-inc-v-wasserman-nycivct-1978.