SITC Inc. v. Riverplace I Holdings LLC

23 Misc. 3d 219
CourtCivil Court of the City of New York
DecidedDecember 30, 2008
StatusPublished
Cited by1 cases

This text of 23 Misc. 3d 219 (SITC Inc. v. Riverplace I Holdings LLC) 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
SITC Inc. v. Riverplace I Holdings LLC, 23 Misc. 3d 219 (N.Y. Super. Ct. 2008).

Opinion

OPINION OF THE COURT

Sabrina B. Kraus, J.

Background

These consolidated summary proceedings were commenced by SITC Inc. (petitioner) who seeks to be restored to possession of apartments 2902, 1019, 1420 and 2929 at 1 River Place, New York, New York 10036 (subject premises) based on allegations that Riverplace I Holdings LLC (respondent), the landlord and owner of the subject premises had illegally locked petitioner out of possession. The proceedings were initiated by order to show cause on December 18, 2008. They were consolidated for joint determination on consent of both parties on the return date.1 A hearing was held on December 19, 2008, after which the court ruled that petitioner had been wrongfully ousted of possession, but reserved decision on the issue of petitioner’s request to be restored to possession.

Facts

Petitioner is the tenant of record for 20 rent-stabilized apartments at the subject building, pursuant to written lease agreements and riders. All of the applicable lease agreements for the subject premises have expired, and have not since been renewed.

The leases executed between the parties were standard form of apartment leases, issued by the Real Estate Board of New York, form number A1/88/A.

Article 1 of the leases provides that the subject premises shall be used for living purposes only, and only by petitioner or its immediate family. Article 1 is supplemented by a rider to the leases, which provides in article 33 that only petitioner, its immediate family members, and persons authorized to occupy the premises pursuant to Real Property Law § 235-f may occupy the [221]*221subject premises. Article 33 further provides a space to list the identity of the occupants, which is left blank. Article 33 (B) of the rider provides that the subject premises shall be occupied by petitioner and its customers.

The leases also have annexed a corporate occupancy rider, which provides that petitioner shall designate the party who shall be the initial occupant of the subject premises to respondent, that petitioner shall have the right to designate up to four other parties to occupy the subject premises upon said notice, and that petitioner may not permit anyone to occupy without such notice.

Article 16 of the leases contains the usual proscriptions against subletting and assignment.

Article 17 (3) of the leases provides that if petitioner defaults in the payment of rent, after a personal demand for rent has been made, or within three days after a statutory demand for rent has been made, or if the lease ends, respondent may reenter the subject premises and take possession, if petitioner has moved out.

The leases were executed by David Drake, also known as David Drakeburg, on behalf of petitioner, who testified that he is the owner petitioner. Mr. Drake runs a company that appears to offer short-term housing to its clients, and was apparently using the subject premises for that purpose.

Mr. Drake testified that petitioner rented apartments for corporate clients who required furnished apartments. Mr. Drake referred to all occupants as his “clients.” He acknowledged familiarity with a corporate entity known as Drake Corporate Relocation. Mr. Drake testified that he was related to that entity, and that Drake Corporate Relocation leases apartments from petitioner.

Mr. Drake testified that the subject premises were not advertised for rental on the Internet, and that they were not rented as hotel units. Mr. Drake testified that as far as he was aware, none of the occupants were charged hotel tax. Mr. Drake’s testimony was evasive and not credible.

Notably in one e-mail correspondence offered into evidence, Elinor McMurtrie, “Operations Coordinator” for “Drake Corporate Housing” sent an e-mail, in reference to two apartments rented by petitioner in the subject building, which read “Please disconnect service for these two apartments as we no longer manage them.”

[222]*222Mr. Drake did not personally attempt to gain access to the subject premises. However, the parties stipulated that on December 4, 2008, respondent changed the method of access to the subject premises, petitioner was no longer able to gain access on that day, and an agent of petitioner did attempt to gain access on that day. The keys and locks for the subject premises are issued through an “FOB” system. The system is an electronic key system. Each key is similar to a credit card, it contains an internal chip, that can be disengaged at any time, by respondent, through the computer system.

At the time the keys were disengaged, no one was in physical occupancy of the subject premises. The leases had all expired, and while respondent had sent renewals out, petitioner had not executed or returned any of the renewal leases.

Respondent’s agent, Katherine McGrath, testified that petitioner had not paid rent on any units since January 2008, and that in January 2008, petitioner paid one month’s rent on each unit. However, respondent’s exhibit D in evidence, which is a rent history for each of the units, indicates a somewhat different payment history, as far as the last payment acknowledged received.

For unit 1019, petitioner last had a zero balance in October 2006, and last made a payment in May 2008.2 The monthly rent is $3,425. Pursuant to the rent history and including the months of August 2008 through December 2008 there appears to be $44,425 in unpaid rent arrears through December 2008.

For unit 1420, petitioner last had a zero balance, exclusive of late charges, in January 2007. The last payment acknowledged received was in May 2008, which was the second of two payments acknowledged in 2008, the first was made in February 2008. The monthly rent for the unit is $2,745. Pursuant to the rent history there appears to be $32,650 due in arrears through December 2008.

For unit 2902, petitioner last had a zero balance in June 2007. The last payment made by petitioner was in May 2008. The monthly rent is $2,300 and there appears to be $32,200 in arrears through December 2008.

[223]*223For unit 2929, petitioner last had a zero balance in January 2007. The last payment acknowledged received was in May 2008, which was the second of two payments acknowledged in 2008, the first was made February 2008. The monthly rent is $2,190, and there appears to be $26,280 in arrears through December 2008.

Ms. McGrath also testified that no payments had been made for any of the units, after the expiration of the lease for said units, which does appear to conform to the leases and rent history in evidence.

At or about December 2007, petitioner started experiencing financial difficulties, and the parties from December 2007 forward had negotiated surrenders of some of the 20 units that petitioner had originally rented. No surrender was tendered or negotiated for the subject premises. The record does not establish that respondent took any action to terminate the tenancies by issuing a notice of nonrenewal, issuing a rent demand3 or otherwise seeking to terminate the tenancies.

Ms. McGrath testified that respondent believed petitioner had abandoned the subject premises. However, other than the reference to negotiated surrenders of other units, respondent offered no evidence to support this claim.

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Cite This Page — Counsel Stack

Bluebook (online)
23 Misc. 3d 219, Counsel Stack Legal Research, https://law.counselstack.com/opinion/sitc-inc-v-riverplace-i-holdings-llc-nycivct-2008.