2025 NY Slip Op 31606(U)
N.Y. Sup. Ct., New York Cty.2025Background
- 54 Thompson St, PH LLC (landlord) entered a two-year residential lease with FineCo, LLC (tenant) on April 15, 2024, for a penthouse apartment, at $45,000/month rent plus utilities, commencing June 1, 2024.
- Daniel Fine personally guaranteed the lease obligations.
- Tenant paid the initial rent and security deposit but allegedly failed to pay subsequent rent and electrical charges from July 2024 onward, remaining in possession of the apartment.
- Plaintiff sued for unpaid rent, electricity, and attorney's fees; as of December 10, 2024, it claims $252,063.08 is owed. A parallel nonpayment proceeding against the tenant is pending.
- Fine defended the action, alleging the apartment was uninhabitable due to serious ongoing defects and that the landlord promised a rent abatement, arguing these issues bar summary judgment on the guaranty.
- Plaintiff sought summary judgment in lieu of complaint under CPLR 3213; the court granted judgment on liability only, holding a later hearing on damages and attorney's fees.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Application of CPLR 3213 on Guaranty | Guaranty is for payment of money only; summary judgment appropriate | Disputed habitability and rent abatement require extrinsic evidence; CPLR 3213 inapplicable | CPLR 3213 applies; defenses not sufficient |
| Breach of Warranty of Habitability as Defense | Breach claim is extrinsic, not a valid CPLR 3213 defense | Habitability voided rent obligations and abatement was promised | Defense insufficient to bar liability judgment |
| Dispute Over Damages Amount | Amount disputed, but does not prevent summary judgment on liability | Amount in dispute due to abatement and extrinsic issues | Judgment on liability; damages to hearing |
| Party Responsibility for Apartment Conditions | Tenant/guarantor caused/failed to remedy conditions; illegal subletting | Landlord failed to repair and maintain property | Issues not material to liability at this stage |
Key Cases Cited
- Kerin v. Kaufman, 296 A.D.2d 336 (1st Dep't 2002) (CPLR 3213 unavailable where material issues require extrinsic proof)
- Frydco Capital Group, LLC v. Park Rio East, LLC, 226 A.D.3d 474 (1st Dep't 2024) (dispute over amount of damages does not bar summary judgment on liability under CPLR 3213)
- Cooperatieve Centrale Raiffeisen-Boerenleenbank, B.A. v. Navarro, 25 N.Y.3d 485 (N.Y. 2015) (elements to prevail on summary judgment for guaranty)