Kesbec, Inc. v. City of New York

189 Misc. 719, 67 N.Y.S.2d 900, 1946 N.Y. Misc. LEXIS 3327
CourtNew York Supreme Court
DecidedDecember 27, 1946
StatusPublished
Cited by2 cases

This text of 189 Misc. 719 (Kesbec, Inc. v. City of New York) is published on Counsel Stack Legal Research, covering New York Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Kesbec, Inc. v. City of New York, 189 Misc. 719, 67 N.Y.S.2d 900, 1946 N.Y. Misc. LEXIS 3327 (N.Y. Super. Ct. 1946).

Opinion

Botein, J.

This is a motion by the plaintiff for a temporary injunction. A cross motion has been made by the defendants to dismiss the complaint pursuant to subdivision 5 of rule 106 of the Buies of Civil Practice. These motions raise the question whether a license from the Commissioner of Parks | to operate gasoline stations comes within the Business Bent I [720]*720Law (L. 1945, ck. 314, as amd. by L. 1946, ch. 273), thereby permitting the licensee to continue operating such stations after the expiration of its license.

The action is brought for a judgment declaring that certain premises occupied by the plaintiff are covered by the act and that the plaintiff is, therefore, entitled to remain in possession of said premises until the termination of the emergency as fixed in that statute. The premises in question are located on the Henry Hudson Parkway. Pursuant to a license from the Commissioner of Parks, commencing January 1, 1942, and expiring December 31, 1946, the plaintiff has been operating two stations for the sale of gasoline and oil, tires and automobile supplies, and for repair service at those locations. . The license, which is annexed to the complaint, was issued to the plaintiff after plaintiff had submitted the highest bid offered for the license to operate the stations. As licensee, the plaintiff had agreed to perform various detailed services in the operation of the stations and to maintain the stations in a certain specified fashion, all subject to control in minute detail as to methods of operation by the Park Commissioner. The plaintiff-licensee also undertook to pay to the city a specified amount for each gallon of gasoline and oil sold at the stations. The agreement between the licensee and the Commissioner of Parks of the City of New York recites that It is expressly understood and agreed, that no building, space or equipment is leased to the licensee ' * *

Prior to the expiration date of the aforesaid license, the plaintiff was informed that it, together "with any other interested operators, would be asked to submit bids for the operation of the stations after 1946. The plaintiff -refused to proffer a bid, taking- the position that the premises which it operated come within the scope of the Business Rent Law, and that, ' consequently, it could not be compelled to vacate the premises so long as it continued to pay the amounts provided for by the agreement between the licensee and the Park Commissioner. The Commissioner of Parks proceeded, nevertheless, to call for and accept bids for the premises, and the complaint ‘alleges that the city has entered into an agreement with the corporation which has submitted the highest bid for the occupancy and operation of the premises effective January 1, 1947, for a five-year period.

The Business Rent Law defines a landlord as An owner, lessor, sublessor * * * or other person receiving or [721]*721entitled to receive rent for the use or occupancy of * * * any business space ”, and a tenant is defined as “A lessee, sublessee, licensee, or other person entitled to the possession or to the use or occupancy of * * * any business space.” (§ 2, subds. [d], [e].) The term business space ” is defined as All rental space in any city * * * ”, with the exception of certain types of space not descriptive of that occupied by plaintiff (§2, subd. [a]).

The applicability of the statute would appear, therefore, to depend upon the renting of "space under a landlord and tenant relationship. The declaration of a public emergency contained in section 1 of the Act indicates that the Legislature intended to alleviate the condition wherein Unjust, unreasonable and oppressive leases and agreements for the payment of rent * * * ” were and are “ now being exacted by landlords under stress of prevailing conditions * * *.”

The licensing of a gasoline station • by the city certainly, does not come within the ambit of the legislative intention thus expressed. The city, by licensing the plaintiff to operate gasoline stations, was merely delegating to the licensee the performance of a function which would otherwise be performed by the city. It was essential, in caring for the Henry Hudson Parkway, that gasoline and comfort stations be made available to motor cars using the highway (see Blank v. Browne, 217 App. Div. 624, 630). The first recital in the license agreement reads “ Whereas, the Commissioner * * * desires for the accommodation of the public to provide Gasoline Service Stations thereon * * -V’

The issuance of a license to the plaintiff was, of necessity, in pursuance of that objective, and not for the purpose of exacting rental in return for the use of space. For a very clear distinction exists as to the power of the city to lease its property and to grant licenses (New York City Charter [1938], §§ 383, 384). The authority of the Park Commissioner extends no further than “ to institute and execute all measures for the improvement [of parks] * * * for ornamental purposes and for the beneficial uses of the people of the city.” (New York City Charter, § 532, subd. 3.) It is illegal for the Commissioner of Parks to devote park properties to business' purposes or for any use other than park use. (Blank v. Browne, supra; Williams v. Gallatin, 229 N. Y. 248.) In Williams v. Hylan (223 App. Div. 48, 53, affd. 248 N. Y. 616) this Department declared with respect to the author[722]*722ity of the Park Commissioner: “If a commissioner is permitted to make snch a lease he can deprive his successor of all authority over such privileges by making a lease which will extend over the entire term of such successor. We are of the opinion that the commissioner was without power to make a lease. His power was limited to granting a revocable license. (Lincoln Safe Deposit Co. v. City of New York, 210 N. Y. 34; Tompkins v. Pallas, 47 Misc. 309; McNamara v. Willcox, 73 App. Div. 451; Brooklyn Heights R. R. Co. v. Steers, 213 N. Y. 76; Gushee v. City of New York, 42 App. Div. 37.) ”

Consequently, the license here issued to plaintiff must be considered to have been motivated by a public purpose and not for a business or profit purpose. Otherwise plaintiff would be relying upon a license issued without authority. It would be anomalous to restrict this sovereign power to care for public property on - the basis of an act calculated to apply to situations wherein landlords take advantage of the wartime inability of tenants to find other quarters in order to exact .higher rentals. The city is not here interested primarily in the receipt of rental; and the licensee’s inability to duplicate the licensed premises is not a product of the war, but a normal characteristic of a franchise or license for which applicants compete. The plaintiff will, be dislocated from a business it has been conducting only by license of the defendants.

Under similar circumstances, Mr. Justice Lockwood recently held that the city’s right of eminent domain could not be limited by the rent control act (Matter of City of N. Y. [Brooklyn-Battery T. Plaza], 186 Misc. 603, affd. 270 App. Div. 1027). In the course of his opinion he stated (p. 609): “ The obvious purpose of the Commercial Rent Law is to prohibit the exaction of unjust and unreasonable rents during the declared emergency.

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Bluebook (online)
189 Misc. 719, 67 N.Y.S.2d 900, 1946 N.Y. Misc. LEXIS 3327, Counsel Stack Legal Research, https://law.counselstack.com/opinion/kesbec-inc-v-city-of-new-york-nysupct-1946.