Rand Products Co. v. Mintz

69 Misc. 2d 1055, 332 N.Y.S.2d 452, 1972 N.Y. Misc. LEXIS 2029
CourtCivil Court of the City of New York
DecidedApril 6, 1972
StatusPublished
Cited by8 cases

This text of 69 Misc. 2d 1055 (Rand Products Co. v. Mintz) 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
Rand Products Co. v. Mintz, 69 Misc. 2d 1055, 332 N.Y.S.2d 452, 1972 N.Y. Misc. LEXIS 2029 (N.Y. Super. Ct. 1972).

Opinion

Harry T. Nusbaum, J.

The issue to be determined in this action is whether the defendants who acquired title to heavy machinery and equipment located on premises formerly leased to and occupied by a now bankrupt subtenant can be held accountabl for either the fair rental value, the use and occupancy of, [1056]*1056or for storage charges during the period the machinery and equipment remains on the premises.

These are the pertinent facts which gave rise to the problem. The plaintiff, a tenant of the entire building premises located at 833 Shepherd Avenue, Brooklyn, New York, subleased such premises to the Linden Backing Corporation on February 1, 1969 which assumed to pay the rent of $898.43 per month reserved in the main lease between the plaintiff and the owner of the building and agreed to be bound by all the terms, covenants and conditions contained in the main lease.

On May 11, 1970, the defendants, Mint Factors made a loan to the Linden Backing Corporation which was secured by an interest in all of Linden’s personal property. On or about April 26, 1971, an involuntary petition in bankruptcy was filed against the subtenant Linden in the United States District Court for the Eastern District of New York. On April 30,1971, the Internal Revenue Service, in order to liquidate its tax liens against the bankrupt, conducted a public auction at which it sold all its right, title and interest in the bankrupt’s personal property to a third party, admittedly acting for defendants, who on the same day April 30, 1971, assigned his right, title and interest in the property to the defendants, Mint Factors.

Thus on April 30, 1971, the defendants had acquired full title to the property described as a “Combining Plant” for the manufacturer of ladies ’ slippers. The plant equipment consisted of large bulky and heavy machinery some of which could not be removed from the premises unless it was first dismantled by riggers at considerable expense. The property remained on the premises until August 13,1971 when it was sold to a third party who removed it from the premises at an alleged cost of $1,250.

During the period the machinery and equipment remained on the premises both oral and written demands for rent and/or storage charges were made which were summarily rejected by the defendants who by letters dated May 28 and June 11, 1971, advised the plaintiff, (1) that there was no landlord and tenant relationship between them, (2) that they had made no agreement to pay for storage space and, (3) that there was no expressed or implied use and occupancy of the premises by them. In addition, the plaintiff was advised that it was privileged to commence dispossess proceedings at any time but would be held strictly accountable for any loss or damage to the machinery and equipment removed and that they, the defendants, had not and did not intend to abandon any of the property remaining on the premises.

[1057]*1057The anomalous position taken by the defendants is somewhat ironic. ..They have adopted the stance that their refusal to enter into any agreement concerning the use of the plaintiff’s real property freed them from any liability for its use and permitted them to both ignore the plaintiff’s demand for compensation and to frustrate its ability to relet the premises for a period of three and one-half months. As business people whose main commodity is money, they appear to be singularly lacking in concern for the property rights of others.

I disagree, with the position assumed by the defendants and reject the concept that the plaintiff is remediless and the court powerless to remedy an obvious injustice (West St. Auto Serv. v. Schmidt, 26 A D 2d 662).

The defendants’ insistence that the plaintiff could or should have brought a dispossess proceeding against the bankrupt subtenant (despite the enormous removal costs involved) and failing this, its only remedy is against the bankrupt tenants’ estate, fails to take into account the terms of the lease. No proof was introduced as to whether the plaintiff lessor terminated the lease pursuant to the provisions of paragraph 17 thereof which permitted such termination upon five days’ notice after the filing of a bankruptcy petition, but this court is of the opinion that the provisions of paragraph 8, of the main lease were availed of by the plaintiff and sanctioned the actions taken by it.

The landlord had the right in the event the premises shall be deserted or become vacant during said term or if any default be made in the payment of the said rent * * * ” to re-enter the premises by force, summary proceeding or otherwise and to rent the premises to others without releasing the original tenant from liability. After the filing of the bankruptcy petition against the tenant, its cessation of doing business, the assertion of control over and the sale of the tenant’s personal property by the Internal Revenue Service, the acquisition of title to all the tenant’s personal property by the defendants and the failure of the tenant to pay the rent due under the lease, can it be argued that the tenant had not deserted the premises? I think not.

It is my opinion that the plaintiff pursuant to the terms of the lease could at that point re-enter and exercise dominion over the premises. Its subsequent demand that the defendants pay rent, use and occupation or storage charges while their property remained on the premises and during which time the landlord could not relet the premies, were valid and proper.

[1058]*1058To avoid payment of the plaintiff’s claim for compensation during this period the defendants rely upon those cases which have held that persons who are not parties to the lease are not liable to the lessor for rent in the absence of privity of contract or estate which would create a landlord-tenant relationship (People v. New York World’s Fair, 1939, 259 App. Div. 739, affd. 286 N. Y. 587), and that no recovery for use and occupation can be had unless there had been a prior relationship of the landlord and tenant or an express agreement to pay for use and occupancy (14 Second Ave. Realty Corp. v. Steven Corp., 16 A D 2d 751, affd. 12 N Y 2d 919; Castle v. Armstead, 168 App. Div. 466). The defendants have, however, overlooked those cases which hold that an action will lie even against a trespasser to recover the reasonable value of the use and occupation of property and the simple rules of equity and justice which must prevail (City of New York v. Fink, 130 Misc. 620; De Camp v. Bullard, 159 N. Y. 450; Bunke v. New York Tel. Co., 110 App. Div. 241, affd. 188 N. Y. 600; Goelet v. National Sur. Co., 249 N. Y. 287; Nims v. Mayor, 59 N. Y. 500).

In the case of the De Camp v. Bullard (supra, p. 454) the court in discussing the measure of damages to be applied in a case of trespass made the following statement: “If a man’s house is vacant with no prospect of a tenant and no intention on his part of occupying it himself, and a trespasser occupies it, he must pay as damages for the trespass the value of the use and occupation, for this would be the duty of a tenant contracting upon a quantum meruit for the use, by consent, of that which the trespasser uses without consent.

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Bluebook (online)
69 Misc. 2d 1055, 332 N.Y.S.2d 452, 1972 N.Y. Misc. LEXIS 2029, Counsel Stack Legal Research, https://law.counselstack.com/opinion/rand-products-co-v-mintz-nycivct-1972.