Ross Realty v. V & A Fabricators, Inc.

42 A.D.3d 246, 836 N.Y.S.2d 242
CourtAppellate Division of the Supreme Court of the State of New York
DecidedMay 15, 2007
StatusPublished
Cited by255 cases

This text of 42 A.D.3d 246 (Ross Realty v. V & A Fabricators, 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
Ross Realty v. V & A Fabricators, Inc., 42 A.D.3d 246, 836 N.Y.S.2d 242 (N.Y. Ct. App. 2007).

Opinion

OPINION OF THE COURT

Lunn, J.

This appeal presents an issue of first impression for the Court. The question to be determined involves the interplay of summary eviction proceedings in a local district court, a rent acceleration clause in a commercial lease, subject matter jurisdiction in the local district court, and res judicata principles. The facts are largely undisputed. On or about April 1, 2003, the plaintiff landlord and defendant tenant entered into a commercial lease for a term of five years, commencing May 1, 2003. Shortly thereafter, the defendant became dissatisfied with the space, failed to pay the June 2003 rent, and abruptly vacated the premises. The plaintiff thereafter commenced a summary [248]*248proceeding in the Fifth District Court of Suffolk County for nonpayment of rent, for the June rent of $6,578.91, to recover possession of the property, and for attorney’s fees. The proceeding was commenced pursuant to article 7 of the Real Property Actions and Proceedings Law and section 204 of the Uniform District Court Act. Immediately prior to the commencement of the nonjury trial, the plaintiff orally moved to amend its petition to also recover accelerated rent, as provided for in the lease, in the amount of $420,820. Following trial, the District Court found a surrender of the premises by operation of law and granted the plaintiff a judgment of possession and rent for the month of June 2003 in the amount of $6,578.91, plus costs and disbursements. The court declined to award the plaintiff accelerated rent or attorney’s fees. The plaintiff appealed from the judgment to the Appellate Term for the Ninth and Tenth Judicial Districts. The Appellate Term affirmed the judgment, but for different reasons. The Appellate Term found there had been no surrender of the premises, but refused to award any accelerated rent upon the tenant’s default, deeming that clause to be an unenforceable penalty due to the absence of any mitigation provision obligating the landlord to relet the premises upon recovery of possession. No further appeal was taken in that proceeding.

Subsequently, the plaintiff commenced this plenary action in the Supreme Court, Suffolk County. The complaint contains four causes of action. The first cause of action seeks to recover attorney’s fees related to the prior District Court summary proceeding. The second cause of action requests approximately $20,000 in what it characterizes as “rental” payments for the months of July, August, and September 2003, during which the premises remained vacant. The third cause of action seeks to recover the difference between the rent the defendant was to pay and the rent the subsequent tenant paid, approximately $53,000.

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Bluebook (online)
42 A.D.3d 246, 836 N.Y.S.2d 242, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ross-realty-v-v-a-fabricators-inc-nyappdiv-2007.