Toribio v. Whiz Realty Corp.

131 Misc. 2d 227, 499 N.Y.S.2d 582, 1986 N.Y. Misc. LEXIS 2489
CourtCivil Court of the City of New York
DecidedJanuary 31, 1986
StatusPublished
Cited by1 cases

This text of 131 Misc. 2d 227 (Toribio v. Whiz Realty Corp.) 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
Toribio v. Whiz Realty Corp., 131 Misc. 2d 227, 499 N.Y.S.2d 582, 1986 N.Y. Misc. LEXIS 2489 (N.Y. Super. Ct. 1986).

Opinion

OPINION OF THE COURT

Jay Stuart Dankberg, J.

Considering the stringent standards which the court requires petitioning tenants to meet prior to appointment of an RPAPL article 7-A administrator, to grant the complete relief requested in the instant motion would result in a court-appointed fiduciary being — as wrote English poet Francis Quarles 350 years ago (Emblems, Book II, emblem 13 [1635])— "discharged, perchance, with greater ease than made.”

In this special proceeding — originally instituted in 1983 pursuant to RPAPL article 7-A by various tenants of 526 West 139th Street, Manhattan — one Rose Edwards, purchaser of the [228]*228building (for $100 at a Referee’s foreclosure sale in 1983), has moved for an order permitting her to intervene as a party respondent (CPLR 401). Upon such intervention, she also requests an order discharging the 7-A administrator and authorizing "full possession, control and management of the subject premises to the owner”.

Assuming, arguendo, that the court has the jurisdiction to order the removal of a 7-A administrator after rendering the judgment of appointment (cf. RPAPL 777 [a]), research has disclosed a paucity of reported cases on the subject of potential discharge of an administrator.

For the reasons that follow, the court grants that branch of the motion which seeks an order permitting intervention. However, as there is a scarcity of sufficient specificity in the supplied submission to support superannuation of the 7-A administrator, the balance of the requested relief is denied.

INTERVENTION

Intervention in an action or special proceeding may be permitted when a person’s claim or defense and the main action or proceeding share common questions of law or fact. Further, where such intervention will not unduly delay determination of the proceedings or prejudice a substantial right of any party, the court may allow such a person to intervene (CPLR 1013).

Here, Rose Edwards, as purchaser of the building after the proceeding was commenced (albeit two years prior to her motion for permission to intervene), has a sufficient claim and interest in the subject premises to warrant intervention. Moreover, based upon the entire submission, it appears that her interest in this proceeding is equal to, if not greater than, the interests of each individual petitioner. Any future decision by this (or any other) court with respect to the 7-A administrator will have a common effect on the interests of the parties to this proceeding, and the owner should be one of the parties.

Finally, since allowing Ms. Edwards to intervene will neither unduly delay this two-year-old special proceeding nor prejudice a substantial right of any of the present parties, it is plain that the first branch of the motion should be, and is, granted.

7-A REMOVAL

Rose Edwards also moves to obtain an order discharging the [229]*2297-A administrator, appointed by order of this court, dated April 6, 1983. She thereby requests that management and control of the subject premises be turned over to her.

As authority for this branch of the motion, she refers to CCA 110 (c) in conjunction with RPAPL 777. These two statutes, when read together, permit the Housing Part to remove a 7-A administrator, movant claims. In this regard, Ms. Edwards notes three cases — (Swallow v Schnipper, NYLJ, Sept. 21, 1984, p 14, col 4 [App Term, 2d & 11th Dists]; Mercer v 944 Marcy Ave. Holding Corp., 92 Misc 2d 564 [Civ Ct, Kings County 1977]; Cole v Westlong Investors Corp., 64 Misc 2d 933 [Civ Ct, NY County 1970]) — for the proposition that, while the RPAPL does not provide for the removal of a 7-A administrator, there is inherent jurisdiction in the court to remove an administrator it previously appointed.

The only statute in this regard is RPAPL 777 (a), which authorizes an order permitting an owner (and specified others) to perform the needed work only "in lieu of rendering judgment”. Thus, at first blush, once a judgment of 7-A appointment was entered, there would appear to be no statutory authority enabling an owner (and others with an economic interest, e.g., a mortgagee) to obtain an order of discharge, perform needed work or participate in any other "normal” ownership activity.

However, note must be taken of the Appellate Division, Second Department, decision in McGovern v 310 Riverside Corp. (49 AD2d 949 [1975]). There, it was held that "noneconomic viability” of a building was a basis to discharge a 7-A administrator. While that ground is not asserted in the instant application, the case supports movant’s position regarding the ability of the court to remove a previously appointed 7-A administrator (see also, 940 St. Nicholas Ave. Tenants Assn. v Dixon, NYLJ, May 20, 1985, p 13, col 5 [App Term, 1st Dept]).

In opposition to this branch of the motion, petitioners refer to Department of Hous. Preservation & Dev. v St. Thomas Equities Corp. (128 Misc 2d 645 [App Term, 2d Dept]). They assert this case provides that the court should not discharge a 7-A administrator absent " 'a prima facie showing that the reason for the appointment no longer exists. In other words, the movant would have to demonstrate to the trial court that repairs have been made or essential services provided and that there is a plan for the continued maintenance of the [230]*230building. In the absence of such a showing, a court would be remiss in granting a motion seeking the discharge of the Administrator since "a grant of the relief requested would place the property in a state of abandonment to the great detriment of the tenants” ’ ” (128 Misc 2d, at pp 649-650, quoting Swallow v Schnipper, supra).

Of course, where the parties to the proceeding all consent to the relief of the 7-A administrator, the court may approve the release (Cole v Westlong Investors Corp., supra).

However, absent proof either that the administrator’s management of the premises would be less effective in removing violations of record than the owner’s potential management, or that it would be in the public interest to remove the administrator and place control and management in a new owner, the court should not, in the exercise of discretion, remove an appointed 7-A administrator (CCA 110 [c]; see also, 940 St. Nicholas Ave. Tenants Assn. v Dixon, supra).

Such is the court’s opinion since "relief afforded under an article 7-A proceeding is a grave remedy and not to be lightly imposed * * * once decreed * * * [the legislative intent] to effect judicial policing of such depressed premises is not to be readily thwarted” (Pack v Loremady Realty Corp., 65 Misc 2d 801, 804 [Civ Ct, Kings County 1971]).

In the present motion, in the absence of a demonstration of any substantive prior or present ties to the subject building; without proof of financial resources to make repairs (and pay taxes, etc.); lacking a detailed financially secure plan to clear the many violations of record; and free from any personal pecuniary undertaking other than a mere $100 used to purchase the building, Ms. Edwards has not shown sufficient reason to disturb the status quo — an experienced administrator who has been running the building during the two years that have passed since she purchased the property at a Referee’s foreclosure sale. It is noted that during these two years, Ms.

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Bluebook (online)
131 Misc. 2d 227, 499 N.Y.S.2d 582, 1986 N.Y. Misc. LEXIS 2489, Counsel Stack Legal Research, https://law.counselstack.com/opinion/toribio-v-whiz-realty-corp-nycivct-1986.