Rakowsky v. Excelsior 57th Corp.

167 Misc. 2d 476, 635 N.Y.S.2d 920, 1995 N.Y. Misc. LEXIS 597
CourtCivil Court of the City of New York
DecidedAugust 25, 1995
StatusPublished
Cited by1 cases

This text of 167 Misc. 2d 476 (Rakowsky v. Excelsior 57th Corp.) 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
Rakowsky v. Excelsior 57th Corp., 167 Misc. 2d 476, 635 N.Y.S.2d 920, 1995 N.Y. Misc. LEXIS 597 (N.Y. Super. Ct. 1995).

Opinion

OPINION OF THE COURT

Debra A. James, J.

In this action, plaintiffs seek recovery of $7,555.68 plus interest, which represents a sublet fee they paid to defendant cooperative corporation as a condition to subletting their residential apartment. The complaint also seeks to recover attorney’s fees, pursuant to Real Property Law § 234.

Defendant makes a preanswer motion to dismiss this action on the grounds that a defense is founded upon documentary evidence and the pleading fails to state a cause of action pursuant to CPLR 3211 (a) (1) and (7), respectively. Plaintiffs cross-move for summary judgment in their favor, arguing that there are no triable issues of fact and request that defendant’s motion be treated as one for summary judgment pursuant to CPLR 3211 (c).

Plaintiffs are shareholders in defendant cooperative corporation and proprietary lessees of one of defendant’s residential apartments. On November 5, 1987, plaintiffs purchased the apartment by assignment of the proprietary lease and the shares accompanying such lease from Padolo Hardouin Ci Gállese, the previous proprietary lessee and shareholder, who is not a party to this action. On that day, defendant executed and delivered a consent, which certified that the proprietary lease was in full force and effect, and plaintiffs executed an assumption agreement, wherein they agreed to comply with all terms and conditions of the proprietary lease for the apartment and received a copy of the proprietary lease and the bylaws.

Six and a half years later, in April 1994, plaintiffs applied for permission to sublet the apartment, which, in June 1993, [478]*478defendant approved in writing, with the condition that plaintiffs pay a sublet fee in the amount of $7,555.68.

Plaintiffs paid the fee under protest.

Plaintiffs contend that at no time before their purchase of the apartment did defendant ever disclose that there were any restrictions or conditions on subletting other than the terms in the proprietary lease and bylaws delivered to them, and that they relied upon the lack of such restrictions or conditions on subletting in those documents, as well as the assumption agreement and consent, in making that purchase. Based upon their reliance for their purchase on this omission, they claim defendant should be estopped from enforcing the sublet fee provisions against them, and demand damages in the amount of the sublet fee and attorney’s fees incurred in this action.

Defendant claims that its authority to impose the sublet fee is proven by documentary evidence. It relies on the following:

(1) The proprietary lease, specifically paragraph 18, thereof, which reads, in pertinent part:

"eighteenth: The Lessee shall not sublet the whole or any part of the apartment for any term to any person or persons, without the Lessor’s prior written consent, authorized by a resolution of the Board of Directors or signed by a majority of the directors or authorized by a resolution adopted by lessees owning of record at least sixty-five (65%) percent of the shares of the Lessor accompanying proprietary leases then in force * * *

"Any consent to assignment or subletting may be subject to such conditions as the directors or shareholders, as the case may be, may impose”;

(2) The minutes of the annual meeting of shareholders held on April 14, 1983, which record a vote of 142,423 shares for and 5,305 shares against an amendment to the bylaws that upon a sublet, a fee of 20% of the current rent at the time of a sublet be paid in advance by the sublessor;

(3) A notice of the April 14,1983 annual meeting of stockholders, dated March 14, 1983, and a ballot and proxy, which each state: "To vote upon amendments to the By-Laws of Excelsior 57th Corp. which will provide as follows: (b) Upon the sublease of an apartment a fee to Excelsior 57th Corp. in the amount of 20% of the then current maintenance shall be paid in advance by the sublessor for the term of the lease”; and

(4) A letter addressed "to the tenant-owners of excelsior 57th corp.” dated April 27, 1983, which states:

"At the annual meeting held on April 14th, 1983 the following was approved by the stockholders * * * (b) Upon the [479]*479sublease of an apartment a fee to Excelsior 57th Corp. in the amount of 20 percent of the then current maintenance shall be paid in advance by the sublessor for the term of the lease. Please put this with your Proprietary Lease.”

Also before this court are the bylaws, which are attached as exhibit D to plaintiffs cross motion. Article V of the bylaws provides: "Proprietary Leases Section 1. — Form. The board of directors shall adopt a form of proprietary lease to be issued by the corporation for the leasing of all apartment buildings to be leased to shareholders under proprietary lease. Such proprietary leases shall be for such terms, with or without provisions for renewals, and shall contain such restrictions, limitations and provisions in respect to the assignment thereof, the subletting of the premises demised thereby, and the sale or transfer of the shares of stock of the corporation accompanying the same, and such other terms, provisions, conditions and covenants, as the board deems advisable.”

Preliminarily, this court must review the procedural posture of this case. On a motion to dismiss, the pleadings must be construed most favorably for the plaintiff (Cohn v Lionel Corp., 21 NY2d 559 [1968]). A motion to dismiss the action pursuant to CPLR 3211 (a) (7) will not be granted unless the moving papers conclusively establish that plaintiff does not have a cause of action. (Guggenheimer v Ginzburg, 43 NY2d 268 [1977].) If a plaintiff is entitled to recovery upon any reasonable review of the stated facts, the complaint, as a pleading, is legally sufficient. (219 Broadway Corp. v Alexander’s, Inc., 46 NY2d 506 [1979].) A plaintiff sufficiently states a cause of action where the pleading states any cause of action, whether or not there is evidentiary support for the complaint. (Rovello v Orofino Realty Co., 40 NY2d 633 [1976].) On a motion to dismiss, the court must accept the allegations of the complaint as true. (Bailey v 800 Grand Concourse Owners, 199 AD2d 1, 2 [1st Dept 1993].)

This court does not elect to treat defendant’s motion as one for summary judgment and the current state of the law appears to preclude the court from considering any proof on defendant’s motion to dismiss for failure to state a cause of action. However, on defendant’s alternative motion for dismissal on a defense founded on documentary evidence pursuant to CPLR 3211 (a) (1), this court reviews the proof proffered by the parties, though such review is limited to documentary evidence, i.e., proof whose contents are "essentially undeniable”. (See, CPLR 3211; Siegel, Practice Commentaries, McKinney’s [480]*480Cons Laws of NY, Book 7B, CPLR C3211:25, at 39, and C3211:10, at 20.)

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Bluebook (online)
167 Misc. 2d 476, 635 N.Y.S.2d 920, 1995 N.Y. Misc. LEXIS 597, Counsel Stack Legal Research, https://law.counselstack.com/opinion/rakowsky-v-excelsior-57th-corp-nycivct-1995.