HOUSING AUTHORITY OF THE CITY OF NEWARK, A BODY CORPORATE AND POLITIC OF THE STATE OF NEW JERSEY, PLAINTIFF-RESPONDENT, v. SUSIE WEST, DEFENDANT-APPELLANT.
Supreme Court of New Jersey
Argued November 5, 1975—Decided March 11, 1976.
69 N.J. 293
Mr. Emil W. Nardachone argued the cause for respondent (Messrs. Friedman & D‘Alessandro, attorneys; Mr. Richard A. Conti on the brief).
The opinion of the court was delivered by
CONFORD, P. J. A. D., Temporarily Assigned. The principal issue here is the right of a landlord to appeal a determination made by a county district court judge in the disposition of a dispossess action under
This controversy arises out of a “rent strike” by the tenants at plaintiff‘s Baxter Homes housing project in Newark. Defendant withheld payment of her rent for a twenty-two month period, upon which plaintiff brought this action to dispossess her for non-payment of rent. No contention is raised before us that the circumstances of the strike constituted a legal defense to the tenancy action. It is conceded that the defendant is substantially in arrears on the stipulation imposed by the trial judge and that the appeal might
I
We consider, preliminarily, defendant‘s contention, advanced in the Appellate Division but not here, that plaintiff was estopped to bring the action for “prejudicial delay” in instituting it. Beyond the dispositive consideration that defendant did not appeal from the judgment of possession, the assertion has no merit. Plaintiff was confronted with a crisis in the rent strike. The election as to when to avail itself of its statutory remedies was for it alone. While we do not condone a rent strike, we observe that defendant could have placed the rent money in escrow, as other tenants in such situations have commonly done. The sо-called delay was not prejudicial in any sense as to which we can take cognizance.
II
Defendant argues that plaintiff has no statutory right of appeal. The contention has two branches: (a) the dispossess statute does not contemplate a right of appeal by a landlord in any circumstances; (b) if an appeal by a landlord is allowable at all, it may not be brought in the present instance, as here there was no “lack of jurisdiction” in the county district court, as required by
The first branch of defendant‘s contention does not appear to have ever been asserted in any reported case. Appeals by landlords have been rejected in dispossess actions because of failure to show the trial court lacked jurisdiction, Sbrolla v. Hess, 133 N. J. L. 71 (Sup. Ct. 1945); Tеrrill Manor, Inc. v. Kuckel, 94 N. J. Super. 25 (App. Div. 1967), but none on the ground that landlords are absolutely barred from appealing.
Proceedings had by virtue of this article shall not be appealable except on the ground of lack of jurisdiction. The landlord, however, shall remain liable in a civil action for unlawful proceedings under this article.
On the face of the act no party is denied a right of appeal on the issue of jurisdiction. The clear implication is that any party has that right. But defendant reads the two sentences of the section together to spell out legislative contemplation that only appeals by tenants for lack of jurisdictiоn, not by landlords, are permissible. The point made is that the express saving to an aggrieved tenant, by the second sentence, of remedies other than appeal for unmeritorious dispossess judgments, demonstrates that by the first sentence all appeals were barred except where judgments were rendered against tenants without attendant jurisdiction. Defendant further points out that the landlord is not prejudiced by denial of appeal since he may bring another dispossess action, the adverse judgment not being res judicata, Van Vlaanderen Machine Co. v. Fox, 95 N. J. L. 40, 41 (Sup. Ct. 1920); or he may bring an action to recover possession under
“Proceedings had by virtue of section 2:32-265 of this title shall not be appealed nor removed by certiorari but the landlord shall remain liable in an action at law for an unlawful proceeding * * *”
As pointed out by Chief Justice Weintraub in Vineland Shopping Center, Inc. v. DeMarco, 35 N. J. 459, 462 (1961),
We conclude that the history of the statute does not support defendant‘s contention that only tenants, not landlords, may bring appeals from tenancy proceedings on jurisdictional grounds. Nor are we persuaded to arrive at such a construction of the act now for policy reasons. As will be presently seen, the jurisdictional basis for appeals by tenants in dispossess actions has been vastly expanded as a result of our decision in Marini v. Ireland, 56 N. J. 130 (1970). Pending any revision of this statutory subject matter by the Legislature — an undertaking obviously needed — our view is that it is consistent with sound policy that the appellate standing of landlords and tenants in this area should continue on a parity.
III
We turn to defendant‘s contention that the county district court had jurisdiction to fix the terms of the warrant for removal and that therefore the statute precludes an appeal. The plaintiff‘s response is that since the statute contains no authority to suspend a warrant for removal for a potential period of 22 months the action of the trial court was devoid of jurisdictional foundation and therefore appealable on that ground. Ivy Hill Park Section Five, Inc. v. Handa, 121 N. J. Super. 366 (App. Div. 1972); Charlie Collins Chevrolet v. Zebrowski, 130 N. J. Super. 116 (App. Div. 1974).
The conceptual fog in the supposed distinction between meritorious errors and jurisdictional defects was considerably dissipated by the decision of this court in Marini v. Ireland, supra. The effect of the decision, at least for purposes of the right of appeal by tenants, was substantially to eliminate the distinction. There, where the landlord‘s right to dispossess was founded upon non-payment of rent, the court held that determination by the trial court of the amount of rent due went both to the merits аnd to jurisdiction. 56 N. J. at 139, 140. While we do not need to decide the point here, and we reserve it, see Levine v. Seidel, 128 N. J. Super. 225 (App. Div. 1974), certif. den. 65 N. J. 570 (1974), it would, in the light of Marini, appear logical for a landlord aggrieved by a determination as to the amount of rent owing, to argue that a jurisdictional error has been made, giving him a right to appeal.
However, the precise issue before us can be decided on narrower grounds. The statute specifies the bounds of the court‘s power to stay a warrant for removal.
If no sufficient cause is shown to the contrary when the action comes on for trial, the court shall issue its warrant to any officer of the court, commanding him to remove all persons from the premises, and to put the claimant into full possession thereof, and to levy and makе the costs out of the goods and chattels of the person in possession.
No warrant of removal shall issue until the expiration of 3 days after entry of judgment for possession.
The act plainly means that unless the tenant at the trial demonstrates the absence of proof of the statutory requisites for a judgment for possession the court shall ordinarily issue its warrant for removal forthwith after the expiration of three days from entry of the judgment for possession. It does not mean by the clause, “if no sufficient cause is shown to the contrary * * *“, as contended by defendant, that the court has authority in its discretion to hold up issuance or stay the warrant for removal for as long as may seem equitable to the judge. The cited language is found in the predecessor statutes going back into the last century (see R. S. 2:32-271 and source note), and it is unquestionable that the basic purpose of the summary proceedings was to permit prompt recovery of the premises by the landlord. Vineland Shopping Center, Inc. v. DeMarco, supra, 35 N. J. at 462.
The foregoing is not to say that the court does not have inherent discretion, as district court judges have assumed for decades, to stay the warrant for a reasonable time to permit a tenant in distressed circumstances to arrange for
These conclusions are buttressed by the carefully circumscribed statute which the Legislature adopted in 1957 (c. 110),
In view of the checkered history of the judicial interpretation of “lack of jurisdiction” for purposes of appeal in dispossess actions, and the great liberality now afforded tenants in that regard by the Marini decision, supra, we conclude that a fair present-day construction of the dispossess statute is that in the absence of legislation giving the trial court authority to stay a warrant for removal for an extended period of time its undertaking to do so renders its order coram non judice and entitles the landlord to appellate relief. We so hold.
Judgment affirmed.
PASHMAN, J. (dissenting). This is an appeal from a summary dispossess action initiated by plaintiff-public housing authority under
Defendant is an unemployed mother in her mid-thirties whose sole source of income is public assistance. She resides in a four and one-half room apartment in Baxter Terrace, a public housing project in Newark which is owned and operated by plaintiff-landlord, Housing Authority of the City of Newark.
Several years ago, during a public housing “rent strike” in Newark, Ms. West attended a meeting where she was urged to join the strike and withhold rent. In January 1972 she stopped paying rent, but unfortunately, like so many others in the same situation, she failed to place her rental payments in escrow. She explained at trial that she joined the “rent strike” because she was angry that “things weren‘t being fixed.”
It was not until October 1974, 22 months after Ms. West began withholding rent, that plaintiff brought this action for summary removal. At that time, plaintiff owed the housing authority $2199 in arrearages. Plaintiff has given no explanation for its delay in bringing this action.1
Plaintiff-housing authority filed a notice of appeal. The Appellate Division, in a reported opinion, held that the County District Court lacked jurisdiction to stay the issuance of the warrant. Housing Authority of Newark v. West, 132 N. J. Super. 229 (App. Div. 1975). As a result, the court vacated the stay and remanded with directions to issue the warrant. We granted certification, 68 N. J. 149 (1975).
I
I first will discuss whether the County District Court had subject matter jurisdiction of this summary dispossess action. If it did not, this Court need not resolve the other issues presented on appeal because all actions and orders of the County District Court would be rendered null and void.
At the outset, I note that neither the landlord nor the tenant questioned the District Court‘s jurisdiction over this suit. In fact, defendant argued both here and before the Appellate Division that the “District Court definitely had jurisdiction of the action,” so that she could advance the argument that under
My primary concern in this regard stems from the trial court‘s consideration of this case and entry of a judgment for possession in the face of the landlord‘s substantial and unexplained delay in bringing suit. While the parties discuss this fact, they do so only in terms of its suggested relevance to the affirmative defenses of equitable estoppel and laches. I conclude, however, that the 22 month delay in bringing suit goes directly to the jurisdictional power of the District Court sitting in a summary dispossess proceeding. I reach this conclusion on the basis of the summary nature of proceedings brought under
At common law, a landlord‘s sole means of obtaining possession of premises from a defaulting tenant was by the intricate and often time consuming action of ejectment. Schlesinger v. Brown, 116 N. J. Super. 500 (Essex Cty. D. Ct. 1971); LeWine, “Landlord and Tenant Law,” 23 N. J. Practice, § 3573 at 588 (1962). Ordinarily, when a landlord is confronted with a defaulting tenant, he is not only interested in eventually obtaining possession of the premises, but he is also interested in a resumption of rental income from that property as quickly as possible. In recognition of the need for a speedy way of dispossessing defaulting tenants of rental property, the summary dispossess statute was enacted as an alternative to the action of ejectment.
Recognizing the legitimacy of thе legislative purpose, courts have nonetheless sought to compensate for the statute‘s abbreviation of important procedural rights by construing it strictly. In one early case, the former Supreme Court explained that:
The proceeding is summary and the jurisdiction is special, limited and statutory; and every essential to its proper exercise must appear to have been complied with. [Schuyler v. Trefren, 26 N. J. L. 213 (Sup. Ct. 1857)].
It is necessary to distinguish between a right of possession and a “right” to bring a landlord-tenant summary dispossess action. The latter is not a “right” at all. It is a privilege established by statute, which privilege is available to a party upon compliance with the requirements of that statute. Upon such compliance, a procedural remedy is then available.
In contrast, however, a “right of possession” has its origin in common law. It is one of the “rights” incident to seisin in “fee simple absolute.” [25 Fairmount Ave., Inc. v. Stockton, 130 N. J. Super. 276, 285 (County Dist. Ct. 1974)]
From this, I surmise that not only does the legislative scheme entail summary disposition of eviction cases, but it presupposes prompt institution of such cases as well. Because рlaintiff failed to institute its action in a timely fashion, it may no longer seek relief under this statute.
After the passage of almost two years, plaintiff‘s cause of action can no longer be called “summary“;
The existence of an alternative statutory remedy further supports this construction of the summary dispossess statute.
A landlord or lessor to whom 1 year‘s rent in arrear is due, and who shall have the right to re-enter the demised premises for nonpayment thereof, may without a formal demand or re-entry, institute an action for the possession of such premises. [Emphasis added].
While
Finally, I note that this interpretation of the jurisdictional limits of summary dispossess actions has received recent support in New York cases construing a similar statute. N. Y. Real Prop. Actions, § 711 (McKinney 1973).
In Maxwell v. Simons, 77 Misc. 2d 184, 353 N. Y. S. 2d 589 (Civil Ct. 1973), the court considered consolidated actions concerning rent arrearages covering periods ranging from eight to eleven months. In construing the summary dispossess statute, the court first observed that the law “is intended to place the landlord in a position to compel the payment of his rent or be restored to possession so that he may rent the premises to persons who will pay.” 353 N. Y. S. 2d at 591. The court then stated that “the proceeding is intended to be summary and the statute must be so construed as to carry out its intent.” Id. After comparing the relief available in a common law ejectment action with the remedial objectives of the summary dispossess statute, the court held that where the landlord commences his action more than three months after the tenant has fallen into arrears, he may no longer utilize the summary proceeding. Id. at 592. That the basis for the court‘s ruling was jurisdictional is demonstrated by its dismissal of the suits without prejudice to the landlord‘s right to sue for a money judgment “in the proper forum.” Id. at 593.
Similarly, in Gramford Realty Corp. v. Valentin, supra, which involved three nonpayment cases with arrearages of over a year, the court again dismissed the actions. Empha-
“I hold that, by its excessive delay, the landlord has forfeited the right to resort to summary proceedings. * * * [T]he landlord has perverted the device of summary proceedings.” [Id.]
By its dismissal without prejudice to the landlord‘s right to pursue an action for a money judgment for the arrearages, Id., the court again indicated that it had limited its consideration to the question of jurisdiction. Accord, Haberman v. Wager, 73 Misc. 2d 732, 342 N. Y. S. 2d 405, 407 (Civil Ct. 1973).
Several recent cases, while distinguishing the Gramford Realty Corp. and Maxwell decisions on their facts, have nonetheless cited these two cases with approval. Antillean Holding Co., Inc. v. Lindley, 76 Misc. 2d 1044, 352 N. Y. S. 2d 557, 559 (Civil Ct. 1973); United Artists Corp. v. No. 731 7th Ave. Restaurant, Inc., 75 Misc. 2d 717, 348 N. Y. S. 2d 277, 280 (Civil Ct. 1973); Malek v. Cruz, 74 Misc. 2d 448, 345 N. Y. S. 2d 367, 371 (Civil Ct. 1973). Although Gramford Realty Corp. and Maxwell have been criticized by at least one trial court, City of New York v. Betancourt, 79 Misc. 2d 146, 359 N. Y. S. 2d 707 (Civil Ct. 1974), on appeal that decision was affirmed on othеr grounds with the appellate court rejecting the reasoning of the trial court and expressly adopting the principles of Gramford Realty Corp. and Maxwell. Id. 79 Misc. 2d 907, 362 N. Y. S. 2d 728, 729 (App. T. 1974).
In urging adoption of the approach taken in Gramford Realty Corp. and Maxwell, I hasten to indicate that the inconvenience suffered by the landlord under this ruling need not be great. For instance, if the tenant continues to withhold rent improperly, at the conclusion of the next rental period and after giving adequate notice, the land-
II
Because I hold that the County District Court lacked subject matter jurisdiction over this action, I find it unnecessary to reach the remaining issues posed by this appeal. Nevertheless, since the majority has chosen to address these issues, I will assume, arguendo, that the District Court did have subject matter jurisdiction so that I, too, may comment upon them.
A
First, the Court rejects defendant‘s contention that plaintiff was estopped from bringing this summary dispossess action by reason of “prejudicial delay.” I find the majority‘s reasoning on this point to be unpersuasive.
The majority suggests that defendant could have avoided any such prejudice by placing her rental money in escrow during the “rent strike.” Ante at 296. This suggestion ignores the fact that defendant is an individual of limited financial means for whom legal advice is not readily available. Consequently it is not altogether clear whether
Where the rent is paid in full prior to the entry of judgment, the action for summary dispossession terminates.
Also, with respect to the issue of prejudicial delay, the majority observes that “the election as to when to avail it-
B
Second, the Court rejects the related cоntentions of defendant that plaintiff has no statutory right of appeal and that, in any event, the landlord failed to establish “lack of jurisdiction” in the County District Court. I am in substantial agreement with the majority‘s disposition of this corollary issue.
Summary dispossess actions, though not otherwise appealable, may be appealed on the ground of lack of jurisdiction.
C
Third, the majority holds that the trial judge did not have jurisdictional authority to issue the stay. Ante at 300-301.
Surely, the Legislature could not have intended, as the majority suggests, that “stays or warrants for removal in situations not coming within the [very limited] prescription of [
Contrary to the majority, I find that trial judges do possess the necessary authority to issue stays and otherwise to deal with hardship situations. Such authority emanates from their inherent equitable power to control the disposition of cases before them. Karel v. Davis, 122 N. J. Eq. 526, 528 (E. & A. 1937). “[I]t is fundamental that a court controls the enforcement of its own judgments.” Joseph Harris & Sons, Inc. v. Van Loan, 23 N. J. 466, 469 (1957). Implicit in this control is the power to issue stays of its own orders where justice so requires. See R. 4:50-1(f); 6:6-1. In one recent summary dispossess action, the court assumed such powers without any expressed statutory authority:
[W]hen the tenant elects to remain in possession the county district court hаs ample power, when the landlord seeks possession for nonpayment of rent, to offer him the choice between vacating or paying, not what his lease expressly recites but what, in view of the landlord‘s breach, he truly owes. Any dissatisfaction with the result by either party may be remedied by an independent action for damages in which neither side is bound by any determination made in the summary action for possession. Van Vlaanderen Machine Co. v. Fox, supra. [Academy Spires, Inc. v. Jones, 108 N. J. Super. 395, 403 (App. Div. 1970)].
Faced with a set of circumstances similar to that in the case at bar, a New York court observed:
Courts generally exercise solely the powers specifically assigned to them. Nevertheless, it is settled that inherent in the very power to act as a court is the further power to regulate litigation for the рurpose of preventing abuses, correcting wrongs, and promoting the fair administration of justice. That is why a court may refuse to admit evidence improperly procured, * * * or vacate a judg-
ment obtained by fraud although in other circumstances the court would long since have lost jurisdiction, * * * or dismiss a complaint where the plaintiff commits patent perjury. * * * [Gramford Realty Corp. v. Valentin, supra, 337 N. Y. S. 2d at 162; citations omitted].
The majority itself admits that examination of the pertinent statutes does not necessarily foreclose the search for authority:
The foregoing is not to say that the court does not have inherent discretion, as district court judges have assumed for decades, to stay the warrant for a reasonable time to permit a tenant in distressed circumstances to arrange for his voluntary removal from the premises. [Ante at 300-301].
Having made this statement, the court fails to look further and instead concludes that the authority assumed by the trial judge in this case was not within the contemplation of the statute.
In contrast, I find ample authority for the trial judge‘s action. I also find that his action was not an abuse of discretion. The trial court‘s order is sufficiently justified by numerous equitable considerations, including the length of the delay in the filing of this suit, the current unavailability of decent housing and, finally, the relative willingness of defendant and unwillingness of plaintiff to reach a compromise settlement despite the tenant‘s poverty.
Finally, I note that the majority relies on two recent Appellate Division decisions vacating a trial judge‘s order staying issuance of a warrant fоr possession in a summary dispossess action. Ivy Hill Park v. Handa, supra (2 1/2 month stay not conditioned on payment of past and future rent); Charlie Collins Chevrolet v. Zebrowski, 130 N. J. Super. 116 (App. Div. 1974) (two month stay with regard to commercial rather than residential property). To the extent that these opinions ignore the inherent equitable power of courts to control their own dispositions and instead find that they “cannot infer any right in the trial court to withhold the premises from the landlord on any theory of hard-
CONCLUSION
To restate my position — because the plaintiff failed to undertake prompt institution of this action, it may not now take advantage of the summary proceeding for dispossession. Consequently, the County District Court did not have subject matter jurisdiction over this action.
Even if the Court did have jurisdiction over the case, I would find that the trial judge did not exceed his authority under the inherent equitable power of courts to control their own judgment when he issued the stay in this case.
For all the reasons noted, I would vacate the judgment of possession and dismiss without prejudice. The majority has chosen not to do so; I must dissent.
For affirmance—Chief Justice HUGHES, Justices MOUNTAIN, SULLIVAN, CLIFFORD and SCHREIBER and Judge CONFORD—6.
For reversal—Justice PASHMAN—1.
Notes
THE COURT: May I ask you something, real honest-like?
MR. CONTE: Your Honor, she admitted to me that she would not hаve that money.
THE COURT: I know. What I want you to tell me, Mr. Conte, if you can, and I have no interest in putting you on the spot at all; I‘m only trying to figure out in my own mind why I get Housing Authority cases when I hadn‘t had them before, and I ask you to tell me why does the Housing Authority wait? The first back rent, apparently, here, was 4/1/69 [sic], then 5/1/69 [sic,] 4/1/70 [sic,] 4/1/70, ‘70, ‘70 [sic], ‘73, ‘72; the whole year, apparently, of ‘72 and the whole year of ‘73. All I‘m asking is why wasn‘t this case on a couple of years ago?
MR. CONTE: If the Court pleases, I began with the Housing Authority on October 9, 1973. The reasons for its policies, and so forth, before that are completely unknown to me. However, I‘d like to state at this time that the policy of the Housing Authority is that a tenant will be taken to court after two (2) months.
Notwithstanding any other provisions of law, in any action brought by a landlord against a tenant to recover possession of premises or unit used for dwelling purposes, to which this act is applicable, whether by summary dispossess proceedings, civil action for the possession of land, or otherwise, the judge of the court having jurisdiction shall use sound discretion in the issuance of a warrant or writ for removal or writ of possession, and if it shall appear that by the issuance of the warrant or writ the tenant will suffer hardship because of the unavailability of other dwelling accommodations the judge may stay the issuance of the warrant or writ and cause the same to issue at suсh time as he shall deem proper under the circumstances, but in no case shall such judge stay the issuance of any such warrant or writ for possession for a longer period than 6 months after the date of entry of the judgment for possession: provided, however, that in no case shall the issuance of the warrant or writ be stayed or the stay thereof be longer continued, as the case may be, if the tenant should (a) fail to pay to the landlord all arrears in rent and the amount that would have been payable as rent if the tenancy had continued, together with the accrued costs of the action; or (b) during the stay, fail to continue to pay to the landlord the amount of rent that would be due if the tenancy had continued; or (c) during the stay, become so disorderly as to destroy the peace and quiet of the other tenants living in the same building or in the neighborhood; or (d) during the stay, willfully destroy, damage or injure the premises. L. 1956, c. 81, p. 168, § 1.
