Oriburger, Inc. v. B.W.H.N.V. Associates

305 A.D.2d 275, 760 N.Y.S.2d 444, 2003 N.Y. App. Div. LEXIS 5849
CourtAppellate Division of the Supreme Court of the State of New York
DecidedMay 22, 2003
StatusPublished
Cited by2 cases

This text of 305 A.D.2d 275 (Oriburger, Inc. v. B.W.H.N.V. Associates) is published on Counsel Stack Legal Research, covering Appellate Division of the Supreme Court of the State of New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Oriburger, Inc. v. B.W.H.N.V. Associates, 305 A.D.2d 275, 760 N.Y.S.2d 444, 2003 N.Y. App. Div. LEXIS 5849 (N.Y. Ct. App. 2003).

Opinion

Order and judgment (one paper), Supreme Court, New York County (Walter Tolub, J.), entered on or about June 14, 2002, which denied plaintiffs motion for injunctive relief and declared that defendant is entitled to terminate plaintiffs lease on the ground that defendant intends to demolish the premises, unanimously reversed, on the law, with costs, the motion granted, the notice of termination tolled pending the determination of the merits of the underlying action, and the matter remanded for further proceedings.

Plaintiff has owned and operated a restaurant at 325 Fifth Avenue since January 1980, when it entered into a 10-year lease of the premises. In 1981, the parties extended the lease another 10 years, to January 2000, and agreed that, “in the event that the landlord shall desire to demolish the premises in which this leasehold forms a part,” it could terminate the lease upon one year’s notice to plaintiff and payment of $300,000. In 1988, the parties extended the lease again, to January 2010, and amended the demolition clause to provide that, if defendant terminated the lease after August 1, 1991 and before January 30, 2000, tenant would receive the $300,000 payment but that, if defendant terminated the lease after January 30, 2000, plaintiff would not receive any consideration for the termination.

On March 2, 2001, defendant served plaintiff with a notice of termination of lease stating that defendant “hereby elects * * * to terminate the Lease effective March 7, 2002 * * * as it intends to substantially demolish the building” and warning that “unless you remove from said premises on or before March 7, 2002 * * * the undersigned will commence summary [276]*276proceedings against you under the Real Property [Actions] and Proceedings Law § 711 to remove you from the premises.” The notice was signed by “Mark Ziemba, agent.”

On March 4, 2002, plaintiff commenced this action against defendant seeking, inter alia, a declaration that the notice of termination is null and void because it is not authorized by the terms of the lease, is not signed by defendant, and is not supported by any evidence that the building was to be demolished. At the same time, by order to show cause, plaintiff moved for a temporary restraining order staying the running of the notice of termination and for a preliminary injunction tolling the notice of termination pending the determination of the underlying action. Defendant opposed, in an attorney’s affirmation, on the grounds that it was not obligated to show that it intended to demolish the building and that plaintiff had not demonstrated a likelihood of success on the merits. Moreover, defendant argued that plaintiff would not be irreparably harmed if defendant maintained its summary proceeding because plaintiff would be entitled to be fully heard on the issues in Civil Court, where expertise on such issues resides and “as the Civil Court * * * has already made findings of fact regarding this owner and its intentions regarding demolition” (emphasis in original). Defendant annexed to its papers the decision and order of Civil Court, New York County (Carol Edmead, J.), in BWH NV Associates v Irish Treasures, Inc. (Index No. 109965/00, Feb. 25, 2002). In a reply affirmation, plaintiff’s counsel wrote that “it is interesting to note that decision points out that the lease of one of the major tenants of the building, White Castle, will not expire prior to the year 2007, and apparently cannot be earlier terminated based on demolition.”

At the argument on the order to show cause, on March 20, 2002, the motion court announced that “[w]e’re here this morning to take testimony on such evidence as the defendant wishes to provide regarding the intentions of the defendant herein to demolish the premises at 325 Fifth Avenue.” Plaintiff’s counsel interjected that plaintiff was not aware that there would be a hearing that morning and was not in possession of any evidence regarding defendant’s intentions to demolish the building because no such evidence was submitted with defendant’s papers in opposition to the motion. The court, however, permitted defendant to call as witnesses Jack Michaelson, who identified himself as a consultant to developers in the city, and Mark Ziemba, who identified himself as defendant’s managing agent.

In a decision dated April 19, 2002, the court noted that the plans “for this twenty million dollar development are, at best, [277]*277in their infancy and that the major expense to date is the $7500 paid to an architectural firm for a zoning study,” and that the consultant engaged by defendant has spent “only 27 hours” on the job, has not billed defendant, and “only has a handshake agreement with a man [whom] he only knew on a first name basis as ‘Moses.’ ” Nevertheless, the court denied plaintiffs application for a stay of the running of the notice of termination on the ground that “defendant presently intends to demolish the premises.” The court stated that “[w]hat was evident * * * is that the defendant has not rented to new tenants since February of last year and as to the [remainder of its properties on Fifth Avenue], the development site, 50% of the space is vacant and there are agreements with respect to most of the remaining tenancies to vacate by December of this year. Given the state of the utilities, the age of the building and the economics of development, it is clear the demolition is imminent.”

Following the entry of this decision, defendant submitted a proposed order that the court ultimately signed. Plaintiffs counter proposed order limited the disposition to a denial of the motion for a stay of the running of the notice of termination pending the determination of this action. It then stated that the temporary restraining order issued by the court on March 5, 2002 would be vacated five days after service of this order with notice of entry and that, “in the event that defendant [ ] [is] successful in this action and in any subsequent action or proceeding to recover possession of the subject premises on the grounds that defendant is demolishing the building, defendant, their successors and assigns are stayed from reletting the subject premises, through January 31, 2010, if demolition of the subject building has not occurred.”

Plaintiff enclosed its counter proposed order in a letter to the court dated May 8, 2002 from counsel, stating, “Plaintiff strenuously objects to defendant’s attempt to bootstrap a judgment and disposition of plaintiffs many claims in the underlying action, on a decision denying an application for a stay of a Notice of Termination, as defendant has tried to accomplish in its proposed order. The sole request of plaintiff in its motion to this Court was for a stay of the running of the Notice of Termination. There was no cross motion for summary judgment interposed by the defendant.”

Plaintiffs counsel also requested a conference with the parties’ attorneys in anticipation of a motion for a stay of the signing of the order pending a motion to reargue or renew. Counsel wrote that he had conducted an investigation based on the hearing testimony and defendant’s counsel’s representations, [278]*278which the court apparently relied on in concluding that demolition of the building was imminent and that most of the remaining tenants had agreed to vacate by December 2002.

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

Related

Barbes Restaurant Inc. v. ASRR Suzer 218, LLC
140 A.D.3d 430 (Appellate Division of the Supreme Court of New York, 2016)
35 New York City Police Officers v. City of New York
34 A.D.3d 392 (Appellate Division of the Supreme Court of New York, 2006)

Cite This Page — Counsel Stack

Bluebook (online)
305 A.D.2d 275, 760 N.Y.S.2d 444, 2003 N.Y. App. Div. LEXIS 5849, Counsel Stack Legal Research, https://law.counselstack.com/opinion/oriburger-inc-v-bwhnv-associates-nyappdiv-2003.