Notre Dame Leasing, LLC v. Rosario

812 N.E.2d 291, 2 N.Y. 459, 779 N.Y.S.2d 801, 2 N.Y.3d 459, 2004 N.Y. LEXIS 1034
CourtNew York Court of Appeals
DecidedMay 11, 2004
StatusPublished
Cited by17 cases

This text of 812 N.E.2d 291 (Notre Dame Leasing, LLC v. Rosario) is published on Counsel Stack Legal Research, covering New York Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Notre Dame Leasing, LLC v. Rosario, 812 N.E.2d 291, 2 N.Y. 459, 779 N.Y.S.2d 801, 2 N.Y.3d 459, 2004 N.Y. LEXIS 1034 (N.Y. 2004).

Opinions

OPINION OF THE COURT

Rosenblatt, J.

On this appeal, we must determine the circumstances under which Social Services Law § 143-b (5) (a) (the Spiegel Law) allows a social services tenant to withhold rent based on dangerous violations in the building.

L

Alexandra Rosario (tenant) resides with her husband and children in a Queens apartment owned by Notre Dame Leasing, LLC (landlord). The tenant, who receives public assistance, pays only a portion of her monthly rent, with the Human Resources Administration (HRA) paying the balance.

[463]*463On January 4, 2000, the landlord commenced a summary proceeding against the tenant in Civil Court to recover $1,454.43 in unpaid rent for October 1999 through January 2000. Relying on Social Services Law § 143-b (5), the tenant moved for summary judgment dismissing the proceeding. She asserted that because conditions in her building were “dangerous, hazardous or detrimental to life or health,” the law excused her from paying rent. In support, she submitted records from the New York City Department of Housing Preservation and Development (HPD) indicating that there were 33 class B and C violations in the building.1

Notwithstanding these violations, the HRA did not withhold rent from the landlord, although it could have, pursuant to its powers under section 143-b (2). The tenant contended, however, that under section 143-b (5) of the Social Services Law the mere presence of such violations justified her nonpayment of rent, even without previous withholding by the HRA. In response, the landlord introduced proof that HPD had reinspected the building, dismissed 13 of the violations and marked others as “pending.” As the pivotal issue on this appeal, the landlord argued that the tenant could not invoke section 143-b (5) unless the HRA first withheld its share of the rent payments.

Civil Court found that the tenant had made a prima facie showing that section 143-b (5) authorized her to withhold rent, but stayed the matter until the landlord submitted proof that it had remedied the violations. The landlord appealed to the Appellate Term, which reversed Civil Court and denied the tenant’s motion for summary judgment. The Appellate Term concluded that a tenant could not invoke the section 143-b (5) defense because the “public welfare department”—here, the HRA—had not withheld its share of rent payments to the landlord, pursuant to its authority under Social Services Law § 143-b (2). The Appellate Term later granted the tenant’s motion for reargument and, following reargument, reaffirmed its earlier decision and granted the tenant leave to appeal to the Appellate Division.

By a divided Court, the Appellate Division affirmed the Appellate Term’s reading of section 143-b (5). Two Justices, however, concluded that the language of section 143-b (5) sup[464]*464ported the tenant’s claim. The Appellate Division granted the tenant permission to appeal to this Court. We now affirm.

II

Social Services Law § 143-b (5) (a) provides that it “shall be a valid defense in any action or summary proceeding against a welfare recipient for non-payment of rent to show existing violations in the building wherein such welfare recipient resides which relate to conditions which are dangerous, hazardous or detrimental to life or health as the basis for non-payment.” The tenant contends that she should be able to invoke this defense whenever there is a qualifying violation in her building, regardless of whether the “appropriate social services agency”—here the HRA—has first withheld rent on that basis. We conclude that the structure, language, history and legislative intent of the Spiegel Law negate the tenant’s interpretation of section 143-b (5).

As we stated in People v Mobil Oil Corp. (48 NY2d 192, 199 [1979]), “[i]t is a well-settled principle of statutory construction that a statute or ordinance must be construed as a whole and that its various sections must be considered together and with reference to each other” (see also McKinney’s Cons Laws of NY, Book 1, Statutes § 97). Although section 143-b (5) might be read to allow a defense untethered to the actions of the public welfare department, such an interpretation undermines the statutory scheme. Section 143-b (5) is a constituent provision of a statute that primarily addresses the rights and responsibilities of the “public welfare department” and “public welfare officials],” and is best read that way.

Thus, section 143-b (1) authorizes the public welfare department to make direct rent payments to the landlord. Subdivision (2) authorizes public welfare officials to

“withhold the payment of any such rent in any case where he has knowledge that there exists or there is outstanding any violation of law in respect to the building containing the housing accommodations occupied by the person entitled to such assistance which is dangerous, hazardous or detrimental to life or health.”

The statute further obligates the “department or agency having jurisdiction over violations” to report them to the “appropriate public welfare department.” (Id.) Subdivision (3) empowers [465]*465public welfare officials to initiate rent reduction proceedings “whenever such official has knowledge that essential services . . . are not being maintained by the landlord or have been substantially reduced by the landlord.” Subdivision (4), in turn, permits the public welfare department to “obtain and maintain current records of violations in buildings where welfare recipients reside.” Finally, subdivision (6) allows the public welfare department to pay withheld rent “upon proof satisfactory to it that the condition constituting a violation was actually corrected.”

The dissent argues that the public welfare departments are apparently not using their powers under the Spiegel Law to withhold rent when violations are present. But it is for those agencies, not for us, to decide when their powers should be used. And if, indeed, the agencies are not doing enough, the proper remedy is for them to do more, not for us to rewrite the statute.

The dissent’s reading of section 143-b (5) is incompatible with the Spiegel Law’s framework. Section 143-b designates the public welfare department and its officials as the principal enforcement actors under the statute. It would be anomalous for the Legislature to fashion subdivision (5) as a private defense that tenants could invoke, independent of any agency action. Rather, section 143-b (5) is best understood as a means of shielding tenants from eviction when the public welfare department chooses to withhold rent, pursuant to its discretion under section 143-b (2). Indeed, the language of subdivision (5) itself suggests that agency action under section 143-b (2) is a condition precedent to a tenant’s invoking the section 143-b (5) defense. The Spiegel Law defense applies only when a building violation relating to “conditions which are dangerous, hazardous or detrimental to life or health” is the “basis for non-payment.” For the purposes of the Spiegel Law, however, agency action is required to determine the existence of a violation. Section 143-b (5) (c) provides that the “defenses provided herein . . . shall apply only with respect to violations reported to the appropriate public welfare department by the appropriate department or agency having jurisdiction over violations.”

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Bluebook (online)
812 N.E.2d 291, 2 N.Y. 459, 779 N.Y.S.2d 801, 2 N.Y.3d 459, 2004 N.Y. LEXIS 1034, Counsel Stack Legal Research, https://law.counselstack.com/opinion/notre-dame-leasing-llc-v-rosario-ny-2004.