Reichman v. Brause Realty, Inc.

34 A.D.2d 338, 311 N.Y.S.2d 629, 1970 N.Y. App. Div. LEXIS 4445
CourtAppellate Division of the Supreme Court of the State of New York
DecidedJune 18, 1970
StatusPublished
Cited by1 cases

This text of 34 A.D.2d 338 (Reichman v. Brause Realty, Inc.) 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
Reichman v. Brause Realty, Inc., 34 A.D.2d 338, 311 N.Y.S.2d 629, 1970 N.Y. App. Div. LEXIS 4445 (N.Y. Ct. App. 1970).

Opinion

McNally, J.

In this injunction action, defendants appeal from a judgment which directed that they be permanently [339]*339enjoined and restrained from (1) engaging in a course of conduct which interferes with or disturbs, or is intended to interfere with or disturb, the comfort, repose, the peace and quiet of any residential tenant in the premises OAvned and maintained by the defendants and located at 135 East 50th Street in the Borough of Manhattan, and (2) leasing, renting or otherwise giving possession to or permitting any person, firm or organization to occupy space in the premises for commercial or nonresidential purposes; and further enjoining the defendants from demanding or causing any tenant to vacate their accommodations Avithout lawful process and to refrain from causing any tenant to vacate by reason of interruption or discontinuance of essential services or threats.

We note that the learned trial court made provisions for changes in the future by reserving jurisdiction to modify the injunction and consequently the judgment does not perpetually freeze the rights of the landlords. Nevertheless, it is our opinion that the second decretal paragraph is too broad since it would preclude commercial renting of residential space validly vacant.

Recital of the facts is in order to establish the basis for the cause of action. Plaintiff-respondent is the Commissioner of the Department of Rent and Housing Maintenance in New York City. Defendants-appellants are the managing agent of the nine-story apartment building, Brause Realty, Inc., and the long-term lessees of the building doing business as 50 Realty Co. Plaintiff commenced this action predicated on the statutory authority contained in subdivision a of section Y51-11.0 of the Administrative Code of the City of New York authorizing an injunction against violation of the applicable provisions of the Administrative Code. “ a. Whenever in the judgment of the city rent agency any person has engaged in or is about to engage in any acts or practices which constitute or will constitute a violation of any provision of subdivision nine of section one of the state enabling act, or section Y51-10.0 of this title, the city rent agency may make application to the supreme court for an order enjoining such acts or practices, or for an order enforcing compliance with such provision, or for an order directing the landlord to correct the violation, and upon a showing by the city rent agency that such person has engaged or is about to engage in any such acts or practices, a permanent or temporary injunction, restraining order, or other order shall be granted without bond. Jurisdiction shall not be deemed lacking in the supreme court because the defense is based upon an order of an inferior court.”

Section Y51-10.0 provides:

[340]*340“d. (1) It shall be unlawful for any person, with intent to cause any tenant to vacate housing accommodations, or to surrender or waive any rights of such tenant under this title or the regulations promulgated thereunder, to engage in any course of conduct (including but not limited to, interruption or discontinuance of essential services) which interferes with or disturbs or is intended to interfere or disturb the comfort, repose, peace or quiet of such tenant in his use or occupance of the housing accommodations. * * *
“ (3) The provisions of this subdivision d shall not apply to any acts performed in good faith and in a reasonable manner for the purpose of operating, maintaining or repairing any building. ’ ’

The complaint alleges that in contravention of the rent law and regulations, the defendants engaged in a prohibited course of conduct which interfered with the tenants’ use and enjoyment of their apartments. The complaint alleges the specific activities of the landlord included illegal commercial renting of apartments in the premises, discontinuance of a switchboard in a manner resulting in severe hardship and inconvenience to tenants, and failing to maintain required essential services in the premises.

The relief sought is an injunction against commercial renting, discontinuance of commercial tenancies already in the premises, a prohibition against interference with and threats of discontinuing essential services, and an injunction against direct and indirect acts causing tenants to vacate their apartments. A temporary injunction issued in favor of the tenants enjoining new commercial, business or other nonresidential renting.

The trial took approximately 10 days and the record comprises 1199 pages. Thirteen tenants testified for the plaintiff. The parties stipulated additional tenants would be deemed to have testified in support of plaintiff’s case. The stipulation is in the form of charts specifying 25 tenant-witnesses, and summarizing the nature of the testimony the tenants would have given if called.

The defendants produced .seven witnesses, none of whom had knowledge of the facts testified to by the tenants and other witnesses of the plaintiff. No principal, officer, employee or agent of the landlords took the stand.

The individual appellants obtained a 93-year lease on the premises^ in 1966. At that time the building was a wholly residential apartment house containing 107 apartments. In September, 1967, the landlords filed an application with the New York City Building Department to convert the entire premises for office occupancy.

[341]*341At all relevant times, the premises were housing accommodations subject to regulation under section 13 of the City Rent, Eviction and Rehabilitation Regulations. (Matter of Sipal Realty Corp., 8 N Y 2d 319.) Defendants never applied for a certificate of exemption under section 13.

Defendants commenced alterations for office occupancy long prior to obtaining a certificate of occupancy authorizing such use.

In September, 1969, there were vacancies in some 40 of the 107 apartments and defendants proceeded to convert the premises to commercial renting. The law in the circumstances is quite clear. In Matter of Sipal Realty Corp. (8 A D 2d 355, mod. 8 N Y 2d 319) we held that section 13 of the State Rent and Eviction Regulations applied to residential space actually converted to commercial or professional use and said space continues to be subject to residential rent control until and unless an exemption is issued by the Administrator. The Court of Appeals agreed with our holding in the following language (p. 324): “ While we are in agreement with the Appellate Division, we believe that the order should be modified so as to grant a new trial, in order to allow the petitioner to introduce the section 13 certificates secured from the Rent Administrator subsequent to the decisions of the Appellate Division.”

At page 322, the court also said: ‘ ‘ Under the rules governing residential rent a landlord who has a building which is currently used for residential purposes, may seek decontrol, subject, however, to the provisions of section 13. Before a certificate is issued approving the conversion to business space the Rent Administrator conducts such inquiry as he deems necessary to determine whether the conversion was made in good faith.”

The Court of Appeals further held (p. 323): “ Proof of the exercise of the duty of supervision which was imposed on the Administrator by the Legislature may not be supplanted by the bare proof of unilateral physical conversion from a residential to a business use wrought by the landlord.

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

Related

3849 Associates v. Bonime
137 A.D.2d 448 (Appellate Division of the Supreme Court of New York, 1988)

Cite This Page — Counsel Stack

Bluebook (online)
34 A.D.2d 338, 311 N.Y.S.2d 629, 1970 N.Y. App. Div. LEXIS 4445, Counsel Stack Legal Research, https://law.counselstack.com/opinion/reichman-v-brause-realty-inc-nyappdiv-1970.