Park Summit Realty Corp. v. Frank

107 Misc. 2d 318, 434 N.Y.S.2d 73, 1980 N.Y. Misc. LEXIS 2884
CourtAppellate Terms of the Supreme Court of New York
DecidedSeptember 26, 1980
StatusPublished
Cited by27 cases

This text of 107 Misc. 2d 318 (Park Summit Realty Corp. v. Frank) is published on Counsel Stack Legal Research, covering Appellate Terms of the Supreme Court of New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Park Summit Realty Corp. v. Frank, 107 Misc. 2d 318, 434 N.Y.S.2d 73, 1980 N.Y. Misc. LEXIS 2884 (N.Y. Ct. App. 1980).

Opinion

OPINION OF THE COURT

Per Curiam.

Final judgment entered April 17, 1980 (Evens, J.) affirmed with $25 costs.

An issue of apparent first impression is posed for our consideration. Section 50 of the Hotel Industry Code (Code [promulgated pursuant to New York City’s rent stabilization laws]), forbids the eviction of a “permanent tenant *** so long as he continues to pay rent”. Sec[319]*319tian 2k of the Code defines a permanent tenant as one who has resided in a hotel apartment for a period of six months.

On this appeal, the occupancy of an apartment in the Mayflower Hotel is at issue. Tenant’s original three-year lease had expired in 1978. He remained in possession, however, as a “permanent tenant” under the Hotel Code.

During the months of May, 1979 through January, 1980, the tenant refused to pay any rent and landlord thereupon sought to evict him. To that end, landlord served tenant with the 30-day notice provided by section 232-a of the Real Property Law for termination of month-to-month tenancies. Tenant refused to vacate the apartment at the end of the 30-day notice period. Landlord, in response, commenced this holdover proceeding. The issue for decision is whether a holdover proceeding is the proper vehicle through which landlord may seek to evict the rent-defaulting tenant, or whether the landlord is limited to a nonpayment proceeding with its more liberal allowances for cure of a tenant’s rent breach.

Landlord characterized its position as to the propriety of employing a holdover proceeding to oust the “permanent tenant” for nonpayment of rent as a “simple one”. According to the landlord, when tenant’s three-year lease expired on July 1, 1978 he continued in possession as a “month-to-month permanent tenant.” Landlord’s claim that the tenant was a month-to-month tenant was premised on section 232-c of the Real Property Law, which states: “Where a tenant whose term is longer than one month holds over after the expiration of such term *** if the landlord shall accept rent for any period subsequent to the expiration of such term, then *** the tenancy created by the acceptance of such rent shall be a tenancy from month to month”. The landlord contends that under the above section its acceptance of rent after expiration of tenant’s three-year lease created a month-to-month tenancy. As to the effect of the Hotel Code which deemed tenant a “permanent tenant”, landlord is of the view that all those regulations accomplished was to suspend a lessor’s common-law rights to end, at his complete discretion, the tenant’s month-to-month ten[320]*320ancy. That suspension was contingent, however, on the lessee’s continued payment of rent. Once rent payments were withheld, argues the landlord, it was revested with its common-law right to terminate a month-to-month tenancy at its absolute pleasure. The termination, according to landlord, took effect in the instant case on November 30, 1979, the date specified in the 30-day notice. Landlord claims that with tenant’s term at an end, a holdover proceeding was an eminently correct device to seek tenant’s dispossession. Landlord finds support for its position in the language of section 50 of the Hotel Code, that “[n]o permanent tenant * * * so long as he continues to pay rent to which the owner is entitled *** shall be evicted except on one of the grounds specified in this Code or in the Real Property Actions and Proceedings Law” [emphasis added]. Landlord reasons that a rent default permitted it to proceed with a holdover action, a “ground specified in RPAPL” 711 (subd 2).

Tenant in moving to dismiss the holdover proceeding argued that only a nonpayment proceeding could be maintained for failure to pay rent. Tenant took issue with landlord’s characterization of his postlease status as that of a “month-to-month” tenant. Tenant claimed to be a “statutory tenant” and insisted that the structure of the Hotel Code limited the landlord to a nonpayment proceeding when a tenant failed to pay rent. Since a failure to pay rent was the foundation for landlord’s holdover proceeding, it was an improper instrument to effect an ouster and should, accordingly, be dismissed. Tenant contended additionally that landlord’s 30-day termination notice was defective in that it did not mention the precise grounds for which landlord was evicting tenant.

The wrangle over which summary proceeding — nonpayment or holdover — should have been brought is more than a mere conflict over the correct remedial avenue required to be traversed by the landlord. In the most tangible sense, the substantive rights of the parties hinge on whether a holdover proceeding is sustainable under the facts of this case. From landlord’s perspective, the virtues of a holdover as opposed to the nonpayment [321]*321proceeding are obvious. Tenant cannot (as is often true in the nonpayment proceeding) cure his default and remain in possession by tendering rent prior to the issuance of the warrant. If, as landlord argues, the month-to-month term has ended and the notice requirements of section 232-a of the Real Property Law have been fulfilled, no defense is available to tenant to avoid the force of the dispossess warrant. For these reasons, tenant strenuously maintains that a nonpayment proceeding is the only mode available to landlord to terminate his tenancy.

Tenant’s position was adopted by Judge Evens who ruled that landlord’s failure to institute a nonpayment proceeding warranted dismissal of his summary proceeding. Also dispositive to the court in dismissing was the fact that the 30-day notice “did not cite the ground for termination.” In our view, the judgment rendered below should be affirmed on the basis of the first ground relied upon by Judge Evens.

ADEQUACY OF THE TERMINATION NOTICE

Initially to be determined is the question of whether the 30-day notice was required to state the precise grounds landlord was evicting tenant for. We believe that no such requirement is imposed by section 232-a of the Real Property Law. The language of the statute itself is clear. All that the notice must inform tenant of is that landlord elects to terminate the tenancy and that refusal to vacate will lead to summary proceedings. While tenant cites one case which required specification of grounds in the 30-day notice (Colavolpe v Williams, 77 Misc 2d 430), that decision, in our opinion, runs counter to the clear language of section 232-a. There was thus no defect in the termination notice served by landlord in the instant case.

PROPRIETY OF LANDLORD’S HOLDOVER PROCEEDING

The contention that the expiration of his three-year lease transformed tenant into a month-to-month tenant is the pivot on which landlord’s holdover proceeding turns. From that first premise landlord argues that the [322]*322antieviction protections of the rent stabilization regulations were vitiated, and the right to terminate tenant’s month-to-month tenancy re-established, when the latter failed to pay the required rent.

We disagree. In our view tenant’s occupancy after the running of the three-year lease was not that of a month-to-month tenant. Rather, tenant continued in possession as a statutory permanent tenant, a status conceptually incompatible with that of the month-to-month tenant’s. Landlord’s holdover proceeding, founded as it is on the flouted 30-day notice which attempted to terminate a nonexistent month-to-month tenancy, was therefore properly regarded as a nullity by the lower court.

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Bluebook (online)
107 Misc. 2d 318, 434 N.Y.S.2d 73, 1980 N.Y. Misc. LEXIS 2884, Counsel Stack Legal Research, https://law.counselstack.com/opinion/park-summit-realty-corp-v-frank-nyappterm-1980.