Lipkis v. Pikus

122 Misc. 2d 136, 471 N.Y.S.2d 177, 1983 N.Y. Misc. LEXIS 4088
CourtCivil Court of the City of New York
DecidedMay 6, 1983
StatusPublished
Cited by6 cases

This text of 122 Misc. 2d 136 (Lipkis v. Pikus) 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
Lipkis v. Pikus, 122 Misc. 2d 136, 471 N.Y.S.2d 177, 1983 N.Y. Misc. LEXIS 4088 (N.Y. Super. Ct. 1983).

Opinion

OPINION OF THE COURT

Lester Evens, J.

In these actions, remanded to the Civil Court, New York County, for disposition by memorandum and order of the Appellate Division, First Department, entered on November 1, 1982, six respondent tenants move by order to show cause to vacate the final judgments of possession entered in favor of the petitioner landlord and to set aside the warrants of eviction issued simultaneously therewith on January 22, 1982, on the grounds that they are entitled to the protection of chapter 349 of the Laws of 1982 (the 1982 Loft Law), which added a new article 7-C, “Legalization of [137]*137Interim Multiple Dwellings”, to the Multiple Dwelling Law.

The tenants contend that the 1982 Loft Law was intended to be remedial and, therefore, to apply retroactively notwithstanding the fact that the law was enacted after the entry of final judgments and issuance of the warrants of eviction against them.

The landlord disputes these contentions, arguing, among other things, that the 1982 Loft Law was not intended to apply retroactively to these or any other tenants. Moreover, the landlord contends that the 1982 Loft Law does not apply to these proceedings because all review by appeal had been completed before the new statute had been enacted and, therefore, the proceedings were no longer pending on the effective date of the new statute; as a result, these judgments had vested and could not be subsequently impaired without violating the New York State and United States Constitutions.

In order to determine whether the 1982 Loft Law applies to these tenants, the court must first resolve a number of important questions. It must determine whether the 1982 Loft Law has retroactive application generally and, if so, whether this statute can be retroactively applied to a situation in which its application would impair rights that had vested because the parties’ right to appeal had expired.

If the court determines both of these questions in the affirmative, it must then consider whether these tenants are covered by the 1982 Loft Law — i.e., whether they meet the statute’s threshold requirements for residential occupants living in interim multiple dwellings — thereby qualifying them for its protections, and, if so, whether the landlord has complied with the reciprocal obligations and responsibilities imposed upon an owner by the statute, thereby entitling him to invoke its protections with respect to collecting rent and maintaining proceedings for possession for nonpayment of rent.

BACKGROUND OF THE CASE

These proceedings evolved in what has been aptly characterized as “the unregulated twilight zone of commercial loft conversions for residential reuse in our city, resulting [138]*138in widespread illegality, absence of housing code enforcement, hazards to health and safety, owner abuses and manipulation of tenants, and housing law confusion”, despite the existence of a 1977 law regulating such conversions (Multiple Dwelling Law, art 7-B). (Lipkis v Pikus, 96 Misc 2d 581, 584, mod 99 Misc 2d 518 [App Term, 1st Dept], affd 72 AD2d 697.)

Sometime back in September and October, 1977, a number of artist tenants living in several loft buildings on Walker Street owned by this landlord responded to what they believed to be breaches of the implied warranty of habitability and violations of the Multiple Dwelling Law and the Administrative Code of the City of New York by withholding their rent. This led to the landlord’s instituting summary nonpayment proceedings.

After a protracted trial, the trial court found, among other things, that the loft buildings in question constituted multiple dwellings. (Lipkis v Pikus, 96 Misc 2d 581, 588-590, supra.) The trial court also determined that the landlord was not in compliance with the laws regulating multiple dwellings for the period covered in the proceedings, in that he did not have a multiple dwelling registration number and a residential certificate of occupancy, and, consequently, pursuant to the statutory penalties imposed for these violations, was prohibited from collecting rent and recovering possession for as long as he remained in noncompliance. (Supra, at pp 590-591.)

As a result of these findings, the trial court dismissed the landlord’s petitions, barred the recovery of rent and possession, and directed that the rents deposited with the court or held in escrow by the tenants’ attorney be refunded to each tenant upon the submission of appropriate papers.

On appeal, the Appellate Term modified the trial court’s order to the extent of reversing the dismissal of the petitions and the direction to refund the rent on deposit and, instead, directed final judgment for the landlord. It then affirmed the order as modified but stayed enforcement of the final judgment until such time as the landlord obtained a certificate of occupancy in compliance with the Multiple Dwelling Law.

[139]*139The appellate court further directed the tenants to deposit any arrears in rent with the clerk of the Civil Court and to continue to deposit use and occupancy at the rate previously payable as rent as it became due, pending compliance by the landlord. It further specified that on proof of compliance the landlord could move to vacate the stay and to recover the fund on deposit and that, in the event of noncompliance, the stay would continue until it made a further order.

In explaining its decision, the court pointed out that both sides were aware of the illegal nature of residential occupancy under a commercial lease and were content to abide by that arrangement. “Having entered into possession fully cognizant of the existing realities, tenants should not now be permitted to reap the benefits of occupancy and, at the same time, avoid the payment of rent.” (Lipkis v Pikus, 99 Misc 2d 518, 520, supra.)

Consequently, the Appellate Term directed final judgment for the landlord but conditioned enforcement of the money portion of that judgment upon the procurement of a residential certificate of occupancy. It viewed this relief as “giving balance to the competing interests of both parties by avoiding unjust enrichment to the tenants and stimulating expeditious completion of the actions necessary to legalize the conversion.” (Lipkis v Pikus, 99 Misc 2d, at p 521, supra.) The Appellate Division unanimously affirmed on the majority opinion at the Appellate Term (72 AD2d 697), and the Court of Appeals dismissed a further appeal to it on jurisdictional grounds (51 NY2d 874).

After some initial confusion as to the amount of arrears to be paid into court and a subsequent judicial determination of those amounts in August, 1979, the tenants deposited their rent moneys into court. At some point, however, the landlord apparently stopped providing services (a contention the landlord does not effectively dispute). Although the Appellate Term had provided for a further order in the event of noncompliance in obtaining a certificate of occupancy, it gave no guidance to the tenants on the appropriate way to proceed in the event services were curtailed. Consequently, the tenants responded by again withholding their rent. The landlord then sought to vacate the stay and [140]*140direct entry of the final judgments and issuance of warrants of eviction by making a number of motions in the Civil Court, all of which were denied.

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Related

City of New York v. Castro
143 Misc. 2d 766 (New York Supreme Court, 1989)
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129 Misc. 2d 326 (New York Supreme Court, 1985)
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128 Misc. 2d 485 (New York Supreme Court, 1985)
Spring Realty Co. v. New York City Loft Board
127 Misc. 2d 1090 (New York Supreme Court, 1985)
Lipkis v. Pikus
103 A.D.2d 682 (Appellate Division of the Supreme Court of New York, 1984)

Cite This Page — Counsel Stack

Bluebook (online)
122 Misc. 2d 136, 471 N.Y.S.2d 177, 1983 N.Y. Misc. LEXIS 4088, Counsel Stack Legal Research, https://law.counselstack.com/opinion/lipkis-v-pikus-nycivct-1983.