Sylvan Mortgage Co. v. Stadler

115 Misc. 311, 188 N.Y.S. 165
CourtAppellate Terms of the Supreme Court of New York
DecidedApril 15, 1921
StatusPublished
Cited by10 cases

This text of 115 Misc. 311 (Sylvan Mortgage Co. v. Stadler) is published on Counsel Stack Legal Research, covering Appellate Terms of the Supreme Court of New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Sylvan Mortgage Co. v. Stadler, 115 Misc. 311, 188 N.Y.S. 165 (N.Y. Ct. App. 1921).

Opinion

Lehman, J.

On March 25, 1920, the parties entered into a written agreement whereby the plaintiff, leased to the defendant an apartment for the term of two years beginning October first, .the date of the expiration of the term granted in a previous lease to the defendant. The rent reserved in the ■ old lease' was $1,300 per annum and under the terms of the' new [313]*313lease the defendant agreed to pay a rental of $2,500. The plaintiff now brings this action to recover the first month’s rent payable under the lease of March .25, 1920. The answer alleges “ that the rent to recover which this action is brought is unjust and unreasonable and that the alleged agreement under which the same is sought to be recovered is oppressive ’ ’ and also contains allegations which are intended to show that the lease was executed under duress.

The learned trial justice has held that the defendant cannot interpose the defense authorized by chapter 136 of the Laws of 1920, that the rent is unjust and unreasonable and that the agreement under which the same is sought to be recovered is oppressive for the agreement in this case was made prior to the time when the statute went into effect, but he has given judgment for the defendant upon the ground that the lease was procured by duress.

The courts have hitherto decided that chapter 136 of the Laws of 1920 has no retroactive application to leases made prior to the 1st day of April, 1920. Paterno Inv. Corp. v. Katz, 112 Misc. Rep. 242; affd., without opinion, 193 App. Div. 897; 78th Street & Broadway Co. v. Rosenbaum, 111 Misc. Rep. 577. The recent decision of the Court of Appeals in the case of People ex rel. Durham Realty Corp. v. La Petra, 230 N. Y. 429, has not affected the authority of these cases. It is true that the Court of Appeals has held that the legislature had the power to take away the remedy of the landlord to enforce an expressed or implied obligation of the tenant to surrender possession at the expiration of the term, even though in a sense the obligation of a contract is thereby impaired, but it has not intimated that the provisions of chapter 136 of the Laws of 1920 were intended to be applicable to leases made before the passage of that act, or that the [314]*314emergency conditions which the legislature has found existed would he in any wise relieved by-giving that act a retroactive application.

It follows that the judgment in favor of the defendant can be sustained only if he has proven that he is entitled to be relieved of the obligations contained in his written agreement because that agreement was obtained by duress on the part of the landlord.

The defendant’s evidence shows and the trial justice has held that on March 10,1920, the defendant was notified, together with other tenants of the landlord, that the plaintiff required possession of their respective apartments on September 30, 1920, the date of the expiration of the leases under which they held possession. The defendant was informed that the landlord was ready to give him a new lease for a term beginning on that date at a rental of $2,500. The tenant objected to paying an increase of more than ninety per cent over the existing rent but he was informed that unless he signed a new lease, the landlord would rent the apartment to another tenant. The plaintiff allowed the defendant ten days to see whether he could obtain another apartment upon terms that would be more satisfactory but the defendant was unable to find other suitable apartments and thereupon signed the lease. At that time he was in ill health and feared that the landlord would compel him to leave the premises at the expiration of his original lease. The tenant took no steps to disaffirm the lease prior to October first, but merely refused to pay the rental in advance on October first when by the terms of the lease the first month’s rental became due. Even at the trial he was unwilling to accept a cancellation of the lease and to make a promise that he would leave the premises within sixty days. No evidence was presented that the rent agreed upon in the lease was [315]*315higher than the rental obtained from other tenants for similar apartments in the same neighborhood, but the plaintiff’s counsel expressly conceded that there was a presumption that the rent was unreasonable and oppressive and there is evidence which shows that it was not based upon any calculation of a reasonable íeturn upon the landlord’s investment.

It .would appear from the dissenting opinion in the case of People ex rel. Durham Realty Corp. v. La Fetra, supra, that the Court of Appeals was agreed that the defense of duress could not be sustained under such circumstances, but as the actual decision in that case was based upon the sufficiency of the pleadings and in any view of the case the pleadings in that case were insufficient I have preferred to consider the question anew as presented by the actual proof in this case.

In March, 1920, when the negotiations for the lease were initiated and the lease actually executed, the. landlord had a legal right to inform the defendant that unless he signed a new lease at an increased rental he would rent the premises to a new tenant at the expiration of this tenant’s lease. The threat express or implied that the landlord would exercise his lawful right to regain possession of the premises at the expiration of the term then in force, constitutes no duress, for duress can never be predicated upon a threat to enforce legal rights by lawful means. McPherson v. Cox, 86 N. Y. 472; Dunham v. Griswold, 100 id. 224. The learned trial justice recognized the authority of these decisions, but held that the duress in this case was not predicated uppn the threat of the landlord to enforce his legal right to compel the tenant to surrender the apartment at the expiration of his existing term, but was based upon the helpless condition of the defendant in view of extraordinary condi[316]*316tions which prevented him from obtaining any apartment at a reasonable rate and the unconscionable conduct of the landlord in taking advantage of this condition to extort a lease which was actually oppressive. A court of equity will undoubtedly under proper circumstances relieve a party from a contract which has been extorted from him by unfair means and it is impossible to lay down any general rule as to the circumstances under which a court of equity will act which will apply to all cases. Before a court of equity, however, has any right to act, it must appear that the party seeking the relief did not wish to enter into such a contract but was in effect compelled to do so by some peculiar condition of hardship. In the present case the tenant did wish to enter into an agreement which he has made and the landlord did not compel him to do so. The tenant was well aware of the fact that owing to various economic causes there was a dearth of housing accommodations in the city of New York. He was at that time in possession of an apartment, but the law as it existed then did not recognize any prior right on his part to continue in that possession after the expiration of his lease. The landlord had the legal right to rent the apartment to another person at the expiration of the defendant’s term. There is no proof, and it cannot be inferred, that the landlord could not have obtained from other persons the same rental as he exacted from this defendant or that he derived any special advantage from making a contract with this defendant instead of with some other willing person.

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Cite This Page — Counsel Stack

Bluebook (online)
115 Misc. 311, 188 N.Y.S. 165, Counsel Stack Legal Research, https://law.counselstack.com/opinion/sylvan-mortgage-co-v-stadler-nyappterm-1921.