Tower West Associates v. Derevnuk

114 Misc. 2d 158, 450 N.Y.S.2d 947, 1982 N.Y. Misc. LEXIS 3450
CourtCivil Court of the City of New York
DecidedApril 19, 1982
StatusPublished
Cited by5 cases

This text of 114 Misc. 2d 158 (Tower West Associates v. Derevnuk) 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
Tower West Associates v. Derevnuk, 114 Misc. 2d 158, 450 N.Y.S.2d 947, 1982 N.Y. Misc. LEXIS 3450 (N.Y. Super. Ct. 1982).

Opinion

[159]*159OPINION OF THE COURT

Richard Lee Price, J.

This case involves approximately 100 nonpayment proceedings brought by the landlord petitioner, Tower West Associates (hereinafter referred to as Tower West), against those of its tenants who, at the time of initiation of these proceedings, were participating in a rent strike, which began in October, 1980.

The trial in this case proceeded from September 16,1981 through November 24, 1981 in Trial Term, Part II. Testimony was presented by approximately 10 witnesses, appearing and being recalled for the respective parties. A wealth of documentary material was offered and received in evidence.

BACKGROUND OF THE TOWER WEST PREMISES

The premises that are at the very heart of this litigation are located in a building at 65 West 96th Street in Manhattan. This 29-story apartment building is composed of 217 dwelling units. The building was constructed in 1971 under New York City’s Mitchell-Lama program for low and middle income tenants. The rents that prevail at Tower West are comparatively low for the Manhattan area. This apparent bargain, however, is mitigated by the fact that residents must meet certain income level requirements (tenants may not earn over prescribed income levels) in order to be eligible to live in the apartments.1

For reasons that are, at this juncture, unimportant, Tower West was subsequently refinanced through the Federal Government’s active assistance program of the National Housing Act2 and, eventually, supervision of the project passed from the city’s Housing Development Administration to the United States Department of Housing and Urban Development (HUD).

The petitioner landlord, in its papers, characterizes Tower West as a “luxury” apartment house in a “fashionably avant-garde neighborhood” complete with “three elevators, a computer system, a parking garage, a laundry [160]*160room, a community room, an intercom system, a closed-circuit T.V. security system, a lobby, a vestibule, side-door entrance, fluorescent and incandescent exterior lighting, playground, plaza and on-site 24-hour armed security guard, one handyman and five porters”.

The tenants, on the other hand, do not dispute the dormant existence of these services. While the petitioner landlord accuses the tenants of instituting the rent strike solely because of the proposed HUD-approved October 1, 1980 rent increases and the tenants’ opposition to “gentrification” of the neighborhood, the respondent tenants accuse the landlord of neglect and subsequent sought-for justification on the basis that the premises are “luxury” and therefore any diminution in services is merely a de minimus inconvenience.

ARGUMENT OF THE CASE

In this action for nonpayment, petitioner landlord affirmatively puts forth the argument that Federal law preempts a State court from adjusting rent increases approved by HUD. The landlord petitioner’s second argument, put forth defensively in response to the tenants’ counterclaim of a breach of the warranty of habitability, argues that alleged deficiencies in services and conditions, even if substantiated, do not reach the level of a breach of the implied warranty of habitability. The respondent tenants’ polemical powers are spent interpreting all available data on the boundaries and limitations of the warranty of habitability and applying those interpretations favorably to the present situation. As a result of this alleged breach, the tenants seek a rent abatement.

THE PRE-EMPTION ARGUMENT

The landlord petitioner asserts the following with typical assurance: “The same principles that preclude the court from directly invalidating the rent structure [as set by HUD] preclude it from indirectly so doing by granting a rent abatement”. This statement is, of course, in reference to HUD language providing for pre-emption of “the entire field of rent regulation by local rent control boards * * * or [161]*161other authority, acting pursuant to state or local law as it affects projects covered [by HUD].”3 (Emphasis added.)

The landlord petitioner cites a number of cases to support the above contention, including Bronstein v Philadelphia Fair Housing Comm. (488 F Supp 1357). In that case, a municipal administrative agency attempted to prevent certain rent increases approved by HUD from taking effect. This attempt was made by the agency because of alleged violations of the municipal fire and housing codes. The municipal agency, empowered to enforce its codes through maintenance of rents at the status quo, directed the tenants to pay all increases into an escrow account. The court held that the municipal agency was clearly an “other authority” and therefore its powers were pre-empted pursuant to HUD regulations.

As the landlord petitioner correctly notes, this court has previously ruled on this argument — at least peripherally. At this point, the court remains unimpressed and unpersuaded by the authority cited herein by petitioner. Bronstein is clearly distinguishable. The tenants in the present case are merely seeking to redress their grievances through utilization of the court system. This is not an instance of a “municipal authority” seeking to upset the rent structure as laid down by HUD. This court, if it so decides, will simply be granting a rent reduction for diminution of services or an amount of damages for injuries sustained thereby.

BREACH OF IMPLIED WARRANTY OF HABITABILITY

The bulk of testimony given and evidence received at trial was presented to substantiate or refute the respondent tenants’ claim of a breach of the implied warranty of habitability. The determination necessary here is twofold: (1) Does the evidence presented, on the whole, establish a breach of the warranty of habitability? and, if so, (2) What amount of damages or “rent abatement” does the evidence justify?

Clearly, the determination necessary mandates not only a finding regarding liability, but also one of damages.

[162]*162The leading case in the area is Park West Mgt. Corp. v Mitchell (47 NY2d 316, cert den 444 US 992). In that case, the New York Court of Appeals held that a landlord, while not an insurer of the premises, impliedly warrants that (1) the premises will be fit for human habitation, (2) the condition of the premises is in accord with the uses reasonably intended by the parties, and (3) the tenants are not subjected to any conditions endangering or detrimental to their life, health or safety. The court expressed the paramount purpose of the implied warranty of habitability as a means by which a tenant will be placed in a more equitable bargaining position vis-a-vis the landlord.

The requirements of Park West have been extensively explained and. expanded in subsequent case law. One such case has channeled the mandates of Park West into simpler categories. The implied warranties are that housing is: (1) Not dangerous to life, health or safety; (2) Habitable and usable; (3) In accord with reasonable expectations. (Mantica R Corp. NV v Malone, 106 Misc 2d 953.)

Mantica speaks of these three “branches” of the implied warranty of habitability in the disjunctive sense. In other words, the warranty may be breached by a violation of any one branch.

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Bluebook (online)
114 Misc. 2d 158, 450 N.Y.S.2d 947, 1982 N.Y. Misc. LEXIS 3450, Counsel Stack Legal Research, https://law.counselstack.com/opinion/tower-west-associates-v-derevnuk-nycivct-1982.