108 Misc. 2d 349 | N.Y. App. Term. | 1981
OPINION OF THE COURT
Final judgment entered October 22, 1980 reversed, with $30 costs, and final judgment directed in favor of tenant dismissing the petition.
This is 1 of 5 holdover proceedings brought against tenants residing in the 11-story loft structure situated at 821 Broadway, Manhattan. The record establishes that since the summer of 1974, at least five floors of the
Notwithstanding testimony by the landlord and its employees to the effect that none of the tenants were given permission to make major structural alterations or adapt their premises for residential use, we think it plain that the wholesale conversions of these lofts and the extent of the work necessary to effect those conversions could not have taken place without the knowledge and approval of the landlord. The owner’s position that changes of this magnitude were accomplished surreptitiously, and that its agents were not apprised that families were openly living in this building for a period of years, is untenable and scarcely believable. The circumstances compel a finding that the landlord “was aware of and expressly condoned and encouraged the conversion to residential use” (Mandel v Pitkowsky, 102 Misc 2d 478, 479, affd 76 AD2d 807; see, also, Lipkis v Pikus, 99 Misc 2d 518, affd 72 AD2d 697; 155 Wooster St. Assoc. v Bengis, NYLJ, July 2, 1979, p 12, col 1). Having done so, it is now precluded, years later, from seeking to prematurely terminate tenants’ leases upon the ground that they have breached a substantial obligation of their tenancies by using the premises for living purposes — when all concerned necessarily knew from the inception of these leases that the premises would be (and in fact have been) so occupied.
In considering these appeals, we take cognizance of recent remedial legislation concerning the subject of loft conversion. Pursuant to chapter 889 of the Laws of 1980, an owner may not recover possession of a covered dwelling unit on the ground that occupancy of the unit by the tenant is illegal or in violation of the tenant’s
Landlord has argued that the new law is not applicable to these proceedings because they were commenced and final judgments were rendered prior to the act’s effective date. We recognize that prospective interpretation of statutes is generally favored and that it takes a clear expression of the legislative purpose to justify a retroactive application (see Gleason v Gleason, 26 NY2d 28, 36). That purpose is established here. It is clear to us that this enactment was not intended to be given wholly prospective application because by virtue of section 9 of chapter 889 of the Laws of 1980, the law must necessarily affect, inter alia, the rights and obligations of parties under leases executed (and even expiring) prior to its date of passage. Furthermore, the memorandum of the State Executive Department states: “This legislation will provide a moratorium on evictions of loft tenants who hold leases expiring subsequent to June 11, 1980” (1980 McKinney’s Session Laws News of NY, p A-9; emphasis added).
Since these proceedings remain pending and tenants are still in possession, the law should be liberally construed to accomplish its manifest purpose of halting the summary eviction of tenants residing in former commercial lofts. Remedial legislation constitutes an exception to the general rule against retroactivity of statutes (McKinney’s Cons Laws of NY, Book 1, Stat
Assuming, arguendo, that chapter 889 of the Laws of 1980 is not appropriately applied here, we would reverse the final judgments and dismiss the petitions for the reasons earlier stated in this decision. By so holding, we decide these cases in a manner consistent with what is now the expressed public policy of this State.
Concur: Dudley, P. J., Tierney and Riccobono, JJ.