Korn v. Batista

131 Misc. 2d 196, 499 N.Y.S.2d 325, 1986 N.Y. Misc. LEXIS 2484
CourtNew York Supreme Court
DecidedJanuary 13, 1986
StatusPublished

This text of 131 Misc. 2d 196 (Korn v. Batista) 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
Korn v. Batista, 131 Misc. 2d 196, 499 N.Y.S.2d 325, 1986 N.Y. Misc. LEXIS 2484 (N.Y. Super. Ct. 1986).

Opinion

OPINION OF THE COURT

David B. Saxe, J.

These motions arise out of a dispute over loft coverage and qualification for protection under the recently enacted Loft Law (Multiple Dwelling Law, art 7-C, § 280 et seq.). A decision was rendered by the Loft Board on June 5, 1985. By motion No. 156, petitioners, who were occupants of the subject premises, challenge that decision by way of a CPLR article 78 proceeding. Briefly stated, the Loft Board granted coverage to petitioners Korn and Banks, but only as to unit A of the [197]*197fourth floor of 88 University Place. However, it denied coverage to petitioners Nason and Hightower of unit B and petitioner Ballentine and Koff of unit C.

In motion No. 155, respondent 88 University Place seeks an order, pendente lite, enjoining petitioners Korn and Banks from rerenting or occupying unit B (and by reply affidavit includes the recently vacated unit C as well). There is a temporary restraining order currently in effect, granting that relief, by Justice Leonard Cohen, dated October 18,1985.

However, in motion No. 157, petitioners seek an order holding 88 University Place in contempt of that temporary restraining order because it allegedly attempted to change the locks on unit B and disrupt the status quo.

By way of background the following are the pertinent facts:

On April 22, 1977, landlord of 88 University Place, Varsity Properties, Inc. and petitioners Korn and Kahn entered into a loft lease for the fourth floor of the subject premises. The lease was to terminate on April 30, 1982. Although there is no indication in the lease, petitioners Korn and Kahn maintained that, at all times, the fourth floor had been divided into three separate units. From the time Korn and Kahn moved in and through the lease period they were subletting the other two units to various tenants. Paragraph 11 of the lease stated that subletting was permitted subject to the landlord’s consent. During the lease term the landlord never contested the subletting of the other units, in spite of there being testimony that written consent was never formally obtained. In fact it appears that initially Korn and Kahn resided together in unit C but that in May 1979 Korn moved into unit A with Banks, and Kahn remained in unit C until the lease expired. When the lease expired in May 1982 Korn and Banks were living in unit A and two new residents took occupancy in units B and C.

Shortly after the lease expired, the Loft Law became effective. Then, the new net lessee, respondent 88 University Place, commenced a holdover eviction proceeding against Korn/Banks in the Civil Court (88 Univ. Place Assoc. v Korn, Landlord & Tenant No. 119659/82). Petitioners Korn and Banks maintained that they were protected under the new Loft Law. It appears that while Korn and Banks’ status under the Loft Law was still unclear and while the eviction proceeding was still pending, they sublet the other two units to petitioners Nason and Hightower in unit B and petitioner [198]*198Ballentine in unit C. They took occupancy on January 1, 1983 pursuant to oral lease agreements.

On September 23, 1983, Judge Kristin Booth Glen determined that during the critical window period, three separate families were residing in three units on the fourth floor of these premises. Judge Glen did not touch on the issue of who was qualified for protection, but only that the units themselves came under the Loft Law definition of interim multiple dwelling (Multiple Dwelling Law § 281 [1], [2]). In fact, Judge Glen refused to consider the validity of any subtenancy on the issue of interim multiple dwelling status. Accordingly, the holdover petition was dismissed for the reason that the landlord had failed to register the building with the Loft Board. The parties were directed to take their respective courses of action. And so they did.

On October 17, 1983 petitioners filed a coverage application requesting protection of their respective units. In its answer respondent contended that the occupants of units B and C were not protected under article 7-C because they went into occupancy on January 1, 1983, pursuant to illegal and unconsented subleases with Korn. Respondent objected to Korn’s coverage of unit A because of his purported illegal subletting activities in violation of Real Property Law § 226-b, the expired lease and the Loft Board’s own regulations.

In November 1983 respondent brought another holdover proceeding in the Civil Court (index No. 100964/83) for substantial violation of their tenancy and nonpayment of rent.

On April 22, 1984 Judge Jacqueline Silberman stayed the Civil Court proceeding, directed payment by Korn and Banks of use and occupancy and referred to the then pending Loft Board proceeding the issue as to whether Korn "could recover units in the subject-leasehold which were allegedly illegally sublet”.

In order No. 252 the Loft Board decided that the occupants of units B and C, who came into residency after January 1, 1983 without the landlord’s consent, were not protected under the Loft Law. Petitioner Banks and Korn were entitled to protection solely as to unit A. However, the Loft Board could not determine the issue of whether Korn-Banks were entitled to possession of these units because that is within the jurisdiction of the Civil Court. It only resolved the issue of coverage and application of the Loft Law.

In this application, petitioners argue that Judge Glen had [199]*199previously ruled that there were three units protected under the Loft Law and that these units could be sublet by Korn. Petitioners assert that in ruling as it did, the Loft Board overruled Judge Glen’s decision because in effect it decided that Korn breached the lease by subletting two of the three units demised to him.

The Loft Board’s order did not overrule Judge Glen’s decision. As stated above, all that Judge Glen decided was that the fourth floor consisted of three separate residential units which were to be entitled to Loft Law protection and treated as residential units. If petitioner in any way inferred from Judge Glen’s decision that he was entitled to sublet those units, and also entitled to recover them, he is incorrect. That decision was designed to treat what was formally leased as one unit as three separate units. Had Judge Glen determined that Korn and Banks resided in the entire floor then petitioners would not have been protected at all. Without a finding of three or more residential units during the window time period, there can be no Loft Law protection. (Multiple Dwelling Law § 281 [1].)

Moreover, the claim that the Loft Board exceeded its jurisdiction is also incorrect. The Loft Board is specifically charged with determining interim multiple dwelling status and other issues of coverage pursuant to this article (Multiple Dwelling Law § 282). Courts will defer to the construction given statutes and regulations by the agencies responsible for administration so long as such construction has a rational basis (Matter of Bernstein v Toia, 43 NY2d 437 [1977]).

The Loft Board found that occupants of units B and C were not protected because under either the expired lease, Real Property Law § 226-b, or its own rules and regulations, sections B-3 and C-4, there can be no subletting or subdividing without first obtaining the landlord’s consent. During the hearing, there was testimony that Korn obtained oral consent from respondent’s employee. However, it was denied by respondent and rejected by the Loft Board.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Albano v. Kirby
330 N.E.2d 615 (New York Court of Appeals, 1975)
Bernstein v. Toia
373 N.E.2d 238 (New York Court of Appeals, 1977)
Lower Manhattan Loft Tenants v. New York City Loft Board
487 N.E.2d 889 (New York Court of Appeals, 1985)
Lower Manhattan Loft Tenants v. New York City Loft Board
104 A.D.2d 223 (Appellate Division of the Supreme Court of New York, 1984)
Dworkin v. Duncan
116 Misc. 2d 853 (Civil Court of the City of New York, 1982)
Association of Commercial Property Owners v. New York City Loft Board
128 Misc. 2d 370 (New York Supreme Court, 1985)

Cite This Page — Counsel Stack

Bluebook (online)
131 Misc. 2d 196, 499 N.Y.S.2d 325, 1986 N.Y. Misc. LEXIS 2484, Counsel Stack Legal Research, https://law.counselstack.com/opinion/korn-v-batista-nysupct-1986.