Lincoln Building Associates v. Jame

21 Misc. 2d 500, 196 N.Y.S.2d 241, 1960 N.Y. Misc. LEXIS 3646
CourtCity of New York Municipal Court
DecidedFebruary 8, 1960
StatusPublished

This text of 21 Misc. 2d 500 (Lincoln Building Associates v. Jame) is published on Counsel Stack Legal Research, covering City of New York Municipal Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Lincoln Building Associates v. Jame, 21 Misc. 2d 500, 196 N.Y.S.2d 241, 1960 N.Y. Misc. LEXIS 3646 (N.Y. Super. Ct. 1960).

Opinion

Maxwell Shapiro, J.

This is a summary proceeding wherein the landlord seeks to recover possession of an office occupied by the tenant alleging that the said tenant holds over after the expiration of his term. The landlord does not allege any statutory grounds for the removal of the tenant and concededly the tenant is protected by the Business Bent Law (L. 1945, ch. 314, as amd. by L. 1959, ch. 809, § 4).

The landlord challenges the constitutionality of this emergency legislation arguing that said law violates the due process and ■equal protection clauses of the Fourteenth Amendment of the United States Constitution and our own constitutional provisions prohibiting tb@ taking of private property without just

[501]*501compensation (N. Y. Const., art. I, § 7), and contending that the emergency originally justifying the law has now come to an end.

The Attorney-General has appeared in this proceeding pursuant to section 71 of the Executive Law in support of the constitutionality of the legislation under attack.

There have been several prior attacks upon the constitutionality of the Business Rent Law. Its constitutionality has been upheld in Matter of Court Square Bldg. v. City of New York (298 N. Y. 380) and Lincoln Bldg. Associates v. Barr (1 N Y 2d 413).

The applicable law is abundantly clear and was restated when an almost identical attack was made in Lincoln Bldg. Associates v. Barr (supra) in which the same parties were involved. There have been innumerable cases which have outlined the principles by which the constitutionality of a statute resting on the police powers may be tested. The Court of Appeals, in a decision involving the very statutes herein (Lincoln Associates v. Barr, supra, p. 415) has made the following statement with respect to the rules governing the scope and extent of judicial review: “ A legislative enactment carries with it a strong presumption of constitutionality, i.e., it is presumed to be supported by facts known to the Legislature. * # * This presumption, however, is not irrebuttable * * * and courts may scrutinize the basis of legislative enactments predicated upon the existence of a particular state of facts * * *; but they may not be concerned with questions as to the reasonableness, wisdom and propriety ’ * * *, expediency * * * or ‘ desirability ’ thereof”. (Citing numerous cases. Emphasis supplied.)

Quoting from the Supreme Court of the United States in Old Dearborn Co. v. Seagram Corp. (299 U. S. 183, 196) the court, in the Barr case, said at page 415: “ Where the question of what the facts establish is a fairly-debatable one, we accept and carry into effect the opinion of the legislature.”

The court further stated (p. 415): “ Nor may courts substitute their judgment for that of the Legislature so long as there can be discovered ‘ any state of facts either known or which could reasonably be assumed ’ to afford support for the legislative decision to act. (United States v. Carolene Products Co., supra, p. 154.) [Citing cases.] ”

At another point in its opinion (supra, pp. 417-418) the court stated the issue there involved and applicable to the case at bar: “ The question thus posed is whether there existed in 1955 a reasonable basis for findings justifying continuance of rent [502]*502controls upon office space. In other words, was the legislative choice without hasisf (South Carolina State Highway Dept. v. Barnwell Bros., 303 U. S. 177, 191-192, supra. [Emphasis supplied] ”.)

The presumption of constitutionality may be rebutted and the courts may review the basis of legislative amendments predicated upon the existence of a particular state of facts. (Defiance Milk Prods. Co. v. Du Mond, 309 N. Y. 537; United States v. Carolene Prods. Co., supra.)

In this proceeding the landlord has contended that since the proceeding in 1955 conditions have changed and that the reasons for this emergency rent control legislation, as they relate to office space, no longer exist. The entire line of testimony offered by the landlord endeavored to show that conditions from 1955 to date have changed to such an extent that today there is a free market in office space; that office tenants can readily find suitable quarters and bargaining with landlords is no longer an illusory concept. The petitioner offered testimony with respect to some 52 office building in the City of New York out of approximately 1,100 buildings, contending that they were a representative sampling of prevailing conditions and that they indicate such fluidity and freedom of movement that there can no longer be a justification for this rent control legislation.

During the course of the trial it appeared that many of the buildings with respect to which the landlord offered testimony were the subject of inquiry in the earlier litigation and inevitably eomparisions were drawn between conditions in those buildings in 1955 and in 1959. The variations in existing rental conditions in those particular buildings were slight. The landlord also offered testimony with respect to existing new buildings which were only in the planning stage in 1955. It appears that the new construction added approximately 15,000,000 square feet to the rental market, substantially all of which was rented by the time the buildings were completed. Despite that fact, the vacancy ratio in Manhattan in 1959 stood at 2.6% whereas in 1955 the ratio of vacancies was 1.2%. This can hardly be termed such a sharp rise as would indicate a change in conditions, sufficient to override the legislation unanimously enacted.

It should be noted that the statute under attack is not the same as the legislation in effect in 1955. A study of the legislative reports indicates that the Temporary State Commission on Rents and Rental Conditions embarked on a program of amending the legislation with a view toward gradual but ulti[503]*503mate decontrol. Thereafter and in each year commencing with the 1956 extension of the act, amendments were inserted permitting landlords to decontrol space by the simple expedient of offering two-year leases to statutory tenants, upon the expiration of which time the space occupied by such tenants would be decontrolled. If the tenant refused or failed to sign such lease his space became decontrolled Within six months. The first step in 1956 was directed against tenants occupying space renting for $20,000 per annum or higher (L. 1956, ch. 735); in 1957 the Legislature reduced this amount to $10,000 (L. 1957, ch. 452); in 1958 the rent involved was reduced to $7,500 (L. 1958, ch. 886) and in 1959 it was further reduced to $5,000 per year (L. 1959, ch. 808). The legislation has always been passed unanimously by the Legislature. At the present time the only business space which is rigidly controlled is that renting for less than $5,000 per annum. In some instances even this Space may be recaptured by expanding tenants (Business Bent Law, § 8, subd. [kk]; L. 1945, ch. 314, as amd.).

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Related

Carmichael v. Southern Coal & Coke Co.
301 U.S. 495 (Supreme Court, 1937)
Matter of Court Square Bldg. v. City of New York
83 N.E.2d 843 (New York Court of Appeals, 1949)
Defiance Milk Products Co. v. Du Mond
132 N.E.2d 829 (New York Court of Appeals, 1956)

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Bluebook (online)
21 Misc. 2d 500, 196 N.Y.S.2d 241, 1960 N.Y. Misc. LEXIS 3646, Counsel Stack Legal Research, https://law.counselstack.com/opinion/lincoln-building-associates-v-jame-nynyccityct-1960.