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Park S. Assoc. v. Essebag

Supreme Court, Appellate Term, First Department
Nov 9, 1984
126 Misc. 2d 994 (N.Y. App. Term 1984)

Summary

holding that landlord should not be permitted to "postpone indefinitely the 'ultimate outcome'" and deny tenant attorney's fees where trial court dismissed landlord's petition two years earlier and landlord had made no effort to recommence suit

Summary of this case from Morice v. Equity Residential Mgmt., LLC

Opinion

November 9, 1984

Appeal from the Civil Court of the City of New York, New York County, David B. Saxe, J.

Graubard Moskovitz McGoldrick Dannett Horowitz ( Scott E. Mollen, Lawrence D. Bernfeld and C. Daniel Chill of counsel), for appellant.

Fischbein Olivieri Rozenholc Badillo ( Ruth C. Haber of counsel), for respondent.


Order entered May 20, 1982 affirmed, with $10 costs.

Landlord commenced a holdover summary proceeding in January 1982, asserting tenant was operating a business out of her residential apartment. Tenant moved to dismiss the petition, on the ground that the notice to cure was defective and void, being a five-day notice when the appropriate provision of the Code of the Rent Stabilization Association of New York City, Inc. (§ 53) required 10 days' notice. At the conclusion of the affidavit in support of tenant's motion, counsel requested an award of reasonable attorneys' fees.

Civil Court held that the notice to cure was fatally defective and dismissed the petition; that dismissal is not contested on this appeal. On the issue of attorneys' fees, the court opined that an award under Real Property Law § 234 (allowing for attorneys' fees to the tenant where tenant successfully defends a summary proceeding, and the lease has a clause permitting attorneys' fees to the landlord) was not yet warranted since it could not be determined whether landlord would commence a new holdover proceeding (citing Elkins v Cinera Realty, 61 A.D.2d 828, and Madison, Inc. v Saurwein, 103 Misc.2d 996).

Nonetheless, the court proceeded to award counsel fees by applying the "bad faith" exception to the "American" rule which generally requires that litigants bear the cost of their own legal expenses. In the court's view, the prosecution of the summary proceeding upon the defective notice to cure constituted "bad faith" per se. We take a less severe approach and do not view the infirmity in the notice as rising to the level of malice ( United Pickle Co. v Omanoff, 63 A.D.2d 892) or "bad faith" ( Harradine v Board of Supervisors, 73 A.D.2d 118) necessary to justify a departure from the general rule that attorneys' fees are not recoverable absent a contractual or statutory liability. Rather, at this stage of the litigation, we think the award for attorneys' fees is sustainable under Real Property Law § 234. It was stated in Elkins v Cinera Realty ( supra) that the Legislature intended an award under the statute "to be based on the ultimate outcome of the controversy, whether or not such outcome is on the merits". It is now over two years since the dismissal of the holdover proceeding. Landlord did not serve a proper notice to cure or commence new proceedings to determine the merits of what is now a stale claim, i.e., tenant's usage of the premises in 1981. The only reasonable conclusion is that landlord abandoned that proceeding and no longer contemplates suit on the underlying merits of that claim. In this context, tenant is entitled to her reasonable attorneys' fees ( Madison, Inc. v Saurwein, supra), for the landlord should not be permitted to postpone indefinitely the "ultimate outcome" of the lawsuit, effectively denying tenant statutory attorneys' fees in the situation where the petition is dismissed on motion and the merits are not addressed.

DUDLEY, P.J., HUGHES and SANDIFER, JJ., concur.


Summaries of

Park S. Assoc. v. Essebag

Supreme Court, Appellate Term, First Department
Nov 9, 1984
126 Misc. 2d 994 (N.Y. App. Term 1984)

holding that landlord should not be permitted to "postpone indefinitely the 'ultimate outcome'" and deny tenant attorney's fees where trial court dismissed landlord's petition two years earlier and landlord had made no effort to recommence suit

Summary of this case from Morice v. Equity Residential Mgmt., LLC

recognizing the bad faith exception to the "American Rule."

Summary of this case from Mellon v. Cessna Aircraft Co.

In Park S. Assocs. v. Essebag (126 Misc.2d 994), two years had elapsed since the summary holdover proceeding had been dismissed because the landlord's notice to cure was defective, but the landlord had neither served a proper notice on the tenant nor instituted a new proceeding.

Summary of this case from Centennial Restorations Co. v. Wyatt

In Park S. Assoc. v Essebag (126 Misc.2d 994 [App Term, 1st Dept]), where two years had elapsed since a procedural dismissal with the landlord having taken no steps to renew the litigation, the court found that the landlord had abandoned the proceeding and that it was therefore appropriate to then determine reasonable attorneys' fees.

Summary of this case from Scotia Assoc. v. Bond
Case details for

Park S. Assoc. v. Essebag

Case Details

Full title:PARK SOUTH ASSOCIATES, Appellant, v. ROSE A. ESSEBAG, Respondent

Court:Supreme Court, Appellate Term, First Department

Date published: Nov 9, 1984

Citations

126 Misc. 2d 994 (N.Y. App. Term 1984)
487 N.Y.S.2d 252

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