Seventy-Second Street Properties, Inc. v. Woods

67 Misc. 2d 539, 324 N.Y.S.2d 339, 1971 N.Y. Misc. LEXIS 1359
CourtCivil Court of the City of New York
DecidedAugust 18, 1971
StatusPublished
Cited by3 cases

This text of 67 Misc. 2d 539 (Seventy-Second Street Properties, Inc. v. Woods) 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
Seventy-Second Street Properties, Inc. v. Woods, 67 Misc. 2d 539, 324 N.Y.S.2d 339, 1971 N.Y. Misc. LEXIS 1359 (N.Y. Super. Ct. 1971).

Opinion

Howard E. Bell, J.

This is the third summary proceeding commenced by the petitioner (landlord) against the respondent (tenant), within the past 10 months, involving the same apartment. The first, a holdover proceeding, terminated in a final judgment for respondent dismissing the petition. The second, a nonpayment proceeding, terminated as follows: a stipulation was placed on the record in which respondent consented to a final judgment in favor of petitioner in the amount of $1,560; a hearing was conducted on the issue of respondent’s counterclaims for attorney’s fees in defending both of the above-[540]*540mentioned proceedings; and respondent was awarded a total of $550 on his counterclaims.

In the instant proceeding (the third) petitioner seeks to recover rent in the amount of $274.40 for the month of May, 1971, plus “ additional rent ” in the amount of $500, for attorney’s fees incurred in prosecuting the prior nonpayment proceeding against the respondent.

Prior to the commencement of the instant proceeding the rent for the month of May, 1971, in the amount of $274.40 was tendered to the petitioner but was rejected because it did not include the additional rent of $500.

Paragraph “ 17 ” of the lease provides as follows: “ If tenant shall default in the performances of any covenant on Tenant’s part to be performed by virtue of any provision in any article in this lease contained, Landlord may immediately, or at any time thereafter, without notice, perform the same for the account of Tenant. If Landlord at any time is compelled to pay or elects to pay any sum of money, or do any act which will require the payment of any sum of money by reason of the failure of Tenant to comply with any provision hereof, or, if Landlord is compelled to incur any expense including reasonable attorney’s fees in instituting prosecuting and/or defending any action or proceeding instituted by reason of any default of Tenant hereunder, the sum or sums so paid by Landlord with all interest, costs and damages, shall be deemed to be additional rent hereunder and shall be due from Tenant to Landlord on the first day of the month following the incurring of such respective expenses.”

The respondent has interposed an answer that contains two counterclaims in addition to general denials and affirmative defenses. The first counterclaim seeks to recover the sum of $5,000 from the petitioner for harassment. The second counterclaim seeks to recover the sum of $1,000 as attorney’s fees, pursuant to section 234 of the Beal Property Law, in having to defend this proceeding.

At the time the stipulation of settlement was placed on the record all the parties were present in court and agreed to its terms. There is no doubt the parties understood that the final judgment in favor of the petitioner in the amount of $1,560, which was consented to by the respondent, covered all of the claims of the petitioner for rent. No provision was made therein for attorney’s fees as additional rent. If such fees had been desired it would have surely been placed in the stipulation, as were the terms of the new lease the parties negotiated.

[541]*541To grant petitioner a final judgment for attorney’s fees for the previous nonpayment proceeding would in effect be vacating and setting aside a settlement. 1 ‘ To permit settlements so made to be vacated except upon a showing of good cause therefor, such as fraud, collusion, mistake, accident or some other ground of the same nature * * * would open the door to possible abuse and make litigation interminable ” (Achtel v. Lieberman, 141 N. Y. S. 2d 750, 752; see, also, Downs v. Mortimer, 73 N. Y. S. 2d 416; cf. Yonkers Fur Dressing Co. v. Royal Ins. Co., 247 N. Y. 435). ‘ ‘ A contemporaneous mental reservation, or a subsequent change of mind as to the adequacy of a bargain which has been made, is wholly insufficient in law or equity to destroy a contract of compromise and settlement formally entered into by persons who at the time apparently believed that they have received the best price obtainable on their claim ” (8 N. Y. Jur; Compromise and Settlement, § 24).

The court believes that the attorney’s fees sought herein as additional rent were an afterthought on behalf of petitioner to recoup and/or offset the $550 recovered by the respondent on his counterclaims. Inasmuch as such fee was not included in the stipulation of settlement, the petitioner has waived the same and is not entitled to recover.

There are two additional issues presented herein that the court feels should be decided even though the above determination would dispose of this matter. The first of these is whether there was a lease in existence during the period for which petitioner received a final judgment for rent in the prior proceeding. If there were no lease, it follows that there is no paragraph 17 under which petitioner could claim attorney’s fee.

The respondent was an assignee of a lease that expired on October 31, 1970. A new lease dated April 21, 1971, was executed by the parties, to commence May 1, 1971. The rent recovered by the petitioner in the prior proceeding was for the months of November, 1970 through April, 1971.

It is conceded that the premises in question were covered by the Rent Stabilization Law of 1969 (Local Laws, 1969, No. 16 of City of New York). Section 50 of the Code of the Real Estate Industry Stabilization Association of New York City, Inc., provides that, No tenant, so long as he continues to pay the rent to which the owner is entitled, shall be denied a renewal lease as prescribed by this Code, nor shall he be removed from any dwelling unit by action to evict or to recover possession, by exclusion from possession, or otherwise, except on one or more of the grounds specified in this Code or in the Real Property Actions [542]*542and Proceedings Laws.” (Emphasis supplied). Section 60 of said code, relating to notices for renewal of leases, provides that the owner must notify the tenant in occupancy a certain number of days prior to the end of tenant’s lease term of such termination 1 ‘ and offer to renew the lease at the stabilization rent permitted for such renewal lease and otherwise on the same conditions as the expiring lease ”.

court is of the opinion that the respondent was a statutory tenant during the period in question and the terms and conditions of the old lease, except as to rental and duration, continued to May 1, 1971, when the terms of the new lease became effective (cf. Barrow Realty Corp. v. Village Brewery Rest., 272 App. Div. 262).

The second of the additional issues that should be decided is whether the petitioner would normally be entitled to recover in this summary proceeding attorney’s fees incurred in connection with the prosecution of a prior nonpayment summary proceeding. The law seems to be pretty well settled that, if the lease provides for the recovery of attorney’s fee as additional rent where the landlord is required to proceed against a tenant who is in default, the same may be recovered in a summary proceeding (Barrow Realty Corp. v. Village Brewery Rest., supra; Stakser v. Rodriquez, 23 Misc 2d 954; Matter of Ross v. Novod, 163 N. Y. S. 2d 787). The law does not appear to be settled, however, as to whether the attorney’s fees that were incurred in a prior proceeding against the tenant, may be recovered in a subsequent summary proceeding. A careful analysis of the Barrow and Stakser

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Bluebook (online)
67 Misc. 2d 539, 324 N.Y.S.2d 339, 1971 N.Y. Misc. LEXIS 1359, Counsel Stack Legal Research, https://law.counselstack.com/opinion/seventy-second-street-properties-inc-v-woods-nycivct-1971.