Hughes v. Lenox Hill HospitalHughes v. Lenox Hill Hospital
OPINION OF THE COURT
This case involves the right of a minor child to succeed to tenancy of a three-bedroom, rent-stabilized apartment following the death of the tenant of record. What makes the assertion of this right remarkable in this instance is that neither the minor nor, apparently, anyone else has resided at the subject premises for the last seven years.
Fundamentally at issue on this appeal is the degree of oversight to be exercised by the courts when confronted with a claim by a family member to succeed to the rent-stabilized lease of the tenant of record, who has permanently departed from the premises. The right of succession is exclusively
The assertion of the right to recover possession of residential premises by or through an infant who succeeds to the tenancy of a departed relative has been encountered tangentially by this Court in prior cases, most recently in
Cox v J.D. Realty Assocs.
(
The facts of this case are essentially undisputed. The named tenant, Bettina Black, entered into a two-year, rent-stabilized lease with defendant Lenox Hill Hospital for apartment 9B, located at 122 East 76th Street in Manhattan, at a monthly rental of $558.19. Her tenancy commenced on December 1, 1985 and expired, according to the lease, on November 30, 1987. Also living in the subject premises was her son, Matthew, who was 10 years old at that time the lease commenced. On December 5, 1987, Bettina Black renewed the lease for another two years.
On October 26, 1989, at which time Matthew was 14 years old, Bettina Black died. Immediately thereafter, her brother, Mark Hughes, and his wife and son, who maintain their permanent residence in Marietta, Georgia, temporarily moved into the apartment with Matthew. On or about November 9, 1989, Mark Hughes removed the furniture and other personal effects from the apartment, returning to his home in Georgia with his family and his nephew. Matthew, a high school freshman, was enrolled at Wheeler High School in Marietta. After completing his sophomore year, he transferred to a boarding school in Connecticut to complete his high school education. During summer vacations, Matthew returned to the Hughes home in Marietta.
In the meantime, on or about November 27,1989, shortly after the apartment was vacated, defendant sent the attorneys for the Estate of Bettina Black a "Notice to Terminate Non-Renewal and Thirty (30) Day Notice to Tenant” (Termination Notice), which states that Mrs. Black’s lease will terminate on March 31, 1990. The notice, which is also addressed to Matthew, indicates that, pursuant to the Rent Stabilization Code (9 NYCRR 2524.2 [c] [2]), defendant has elected not to renew the lease since Bettina Black, deceased, does not occupy the premises as her primary residence and since, upon information and belief, Matthew Black, who formerly resided at the
On or about March 30, 1990, Mark Hughes, as guardian of Matthew and executor of Bettina Black’s estate, commenced this action seeking, inter alia, (1) a declaration that the apartment is Matthew’s primary residence and that Matthew is therefore entitled to a rent-stabilized lease in his own name, (2) a permanent injunction directing defendant to issue a renewal lease to Matthew, (3) a declaration that the Termination Notice is insufficient and defective, and (4) attorneys’ fees and expenses incurred in prosecuting the action.
Defendant interposed an answer in or about April 1990, generally denying the allegations. It asserts the affirmative defense that Matthew is not a primary resident of the apartment nor has he been for some time and, as a first counterclaim, seeks a declaration that it is entitled to possession of the subject premises. In its second counterclaim, defendant seeks rent from December 1,1989 to March 31,1990 at the rate contained in the rent-stabilized lease and use and occupancy at the fair market value for the period commencing April 1, 1990.
The one factual dispute arises from confusion regarding the term of the renewal lease in effect at the time of Mrs. Black’s death. Defendant landlord correctly construes the renewal agreement she executed on December 5, 1987 as extending the lease term until March 31,1990. The renewal agreement states that "your new rent will commence 4/1/88” while reciting that the tenant’s present "lease will expire 11/30/87.” Contrary to Supreme Court’s misapprehension, the end of the original lease term is not dispositive of the commencement of the renewal period. Where the landlord gives late notice of its offer to renew or otherwise delays in furnishing the tenant with the
In May 1990, at a pretrial deposition, Matthew initially stated that his uncle’s home in Georgia was a temporary address, indicating that he was not going to remain there and might move to another location, such as New York. However, he also testified that when people ask him where he lives, he gives the Georgia address, without qualifying it as a temporary residence. In addition, he stated that, in the period of time after he left the apartment, he has returned there for just one day and has not slept there.
Plaintiff then moved for a preliminary injunction pending a determination on the merits. By decision and order entered August 8, 1990, Supreme Court, New York County (Carmen B. Ciparick, J.), granted a Yellowstone injunction and issued a stay, tolling the running of time contained in the Termination Notice, and directed that plaintiff continue to pay rent under the terms of the expired lease, without prejudice.
On January 24, 1994, a nonjury trial was conducted. Only Mark Hughes and Matthew Black testified. At that time, Matthew was enrolled as a freshman at Furman University in Greenville, South Carolina. In response to the court’s inquiry with respect to whether he wanted to retain the apartment, Matthew said that he "want[ed] to have the right to have the apartment, because New York has so many opportunities, and if I had the apartment, it would open new doors, possibly, depending upon what I choose as a major job, or what field I’d like to go into.” The parties stipulated that rent has been paid at the rate specified in the lease pursuant to the terms of the stay imposed by Supreme Court in August 1990.
After trial, Supreme Court found that Matthew had resided with his mother as a full-time student from the inception of the lease until her death and reasoned that, as a full-time student during her occupancy, he was entitled to either a renewal lease or notice of intention not to renew after her death. The court held that the Termination Notice was not served
The pertinent provision on which the right to succeed to the tenancy of the subject premises is predicated is found in the Rent Stabilization Code (9 NYCRR) § 2523.5 (b) (1). It states that if a renewal offer is made to the named tenant pursuant to 9 NYCRR 2523.5 (a) "and such tenant has permanently vacated the housing accommodation, any member of such tenant’s family, as defined in section 2520.6 (o) of this Title, who has resided with the tenant in the housing accommodation as a primary residence for a period of no less than two years * * * immediately prior to the permanent vacating of the housing accommodation by the tenant, or from the inception of the tenancy or commencement of the relationship, if for less than such periods, shall he entitled to be named as a tenant on the renewal lease.” Rent Stabilization Code (9 NYCRR) § 2520.6 (o) includes a son as a family member, observing no distinction between an adult child and an infant and making no provision for service of the requisite notice on a guardian or upon the estate of the decedent in the event of minority.
Plaintiff’s position that his ward is entitled to possession of the premises is predicated on two grounds. First, he relies on Rent Stabilization Code (9 NYCRR) § 2523.5 (b) (2) (ii), which provides: "The minimum periods of required residency set forth in this subdivision shall not be deemed to be interrupted by any period during which the 'family member’ temporarily relocates because he or she * * * (ii) is enrolled as a full-time
Plaintiff’s argument is without merit for two reasons. First, the phrase "[t]he minimum periods of required residency” refers to the interval prior to the permanent removal from the premises of the tenant named in the lease and not, as plaintiff presumes, to the family member’s succeeding tenancy. In
Cox v J.D. Realty Assocs. (supra,
at 182), this Court noted that the pertinent period in determining the residency of two children in the subject apartment was "the two years immediately prior to the date their parents permanently vacated the premises.” The evidence submitted by the would-be successors in that case was found
(supra,
at 184) to be "insufficient to establish the 'ongoing, substantial, physical nexus with the controlled premises for actual living purposes—which can be demonstrated by objective, empirical evidence’ ” (quoting
Emay Props. Corp. v Norton,
Second, plaintiff’s assertion of the right to be the named lessee as successor to his mother’s tenancy is inconsistent with
Quiala v Laufer (supra,
at 37), in which this Court (Ross, J.) noted that succession was claimed by infant family members "whose primary residence is tied to the individual adult under whose parental authority and control they are raised”. The Court applied the "established presumption that the residence of the child is the residence of the parents”
(supra,
at 34) and emphasized
(supra,
at 35) that "the presumption concerning the residence of the child is not easily rebutted, and should not be lightly cast aside”
(see, Catlin v Sobol,
Plaintiffs remaining argument is purely procedural and seems calculated to obviate judicial review of the bona tides of his ward’s claim to the tenancy of his mother. It rests on certain assumptions concerning the process of succession that are not supported by the terms of the succession provision or the various notice provisions on which plaintiff relies. In essence, he argues that the lease under which Bettina Black occupied the premises was never terminated because the required notice was not served on the proper party (Matthew); the notice does not contain a statement of the facts necessary to establish the grounds on which termination is sought pursuant to the Rent Stabilization Code (9 NYCRR 2524.2 [b]); and notice was not served within the time prescribed by Rent Stabilization Code (9 NYCRR) § 2524.2 (c) (2) for termination based upon nonprimary residence, that is, 150 to 120 days prior to the expiration of the lease term.
As an initial observation, notice requirements are largely obviated by the procedural posture of this case. Normally, to commence a summary proceeding the landlord must serve the requisite 30-day notices of its election to terminate the tenancy (Administrative Code of City of NY [Rent Stabilization Law] § 26-504 [a] [1] [f]) and to institute legal proceedings on the basis of nonprimary residence (Rent Stabilization Code [9 NYCRR] § 2524.4 [c]). The landlord is not relieved of compliance with the 30-day notice provisions merely because possession is sought by way of declaratory judgment rather than summary proceeding
(Park House Partners v Delrazabal,
As a further observation on the subject of procedure, it should be emphasized that, normally, a question of the right to possession of leased premises is to be decided in a summary proceeding in Civil Court. The summary proceeding, while not without attendant delay, is far more expeditious and generally would not be expected to take nearly four years to come to trial, as in this case. The nature of this dispute is, however, extraordinary as it presents a novel issue, implicating considerations of public policy, statutory intent and regulatory construction. Therefore, it constitutes an exceptional case, appropriate for resolution in Supreme Court by way of an action for declaratory judgment (Cox v J.D. Realty Assocs., supra, at 181-183).
As to the substance of the parties’ dispute, plaintiff’s particular interpretation of the succession provision warrants analysis. It rests upon the inherent assumption that, (1) upon the death of plaintiff’s decedent, Matthew became the named tenant under the lease and on the further assumption that (2) any proceeding to terminate the tenancy must be based on the ground that Matthew does not use the apartment as his primary residence. Thus, plaintiff is led to the conclusion that (3) the landlord is required to serve Matthew and the estate with the prescribed notice of termination.
Because a family member not named on the lease has only such right to the tenancy as conferred by the succession provision of the Rent Stabilization Code, closer examination of the language of that provision is appropriate. Insofar as pertinent, Rent Stabilization Code (9 NYCRR) § 2523.5 (b) (1) provides that "if an offer is made to the tenant [to renew the lease] and such tenant has permanently vacated the housing accommodation, any member of such tenant’s family * * * shall be entitled to be named as a tenant on the renewal lease.” This language suggests that, in the ordinary course of events, a family member, who remains in the apartment following the departure of the named tenant, will receive a renewal notice towards the end of the lease term, directed to the named ten
The first assumption implicit in plaintiff’s position on this appeal is that operation of Rent Stabilization Code (9 NYCRR) § 2523.5 (b) (1) is automatic upon the death of the named tenant. Under the facts of this case, the result would be the issuance of a renewal lease to a 14 year old who has taken up permanent residence in the State of Georgia; who has no need to retain possession of the apartment because he resides with his guardian; and who made no use of the premises for a period of four years (at the time of trial) following the death of the tenant of record. "While this result is sufficiently objectionable on public policy grounds—resulting in the non-use of a very affordable, three-bedroom apartment for an unconscionable period of time—it also conflicts with the substantive terms of the succession provision.
Under the regulation, a family member is "entitled to be named as a tenant on the renewal lease” only "if an offer is made to the tenant” to renew the lease (ibid.). Had the intent been to immediately install the family member as tenant of record, the regulation would doubtless provide for transfer of the leasehold upon the named tenant’s permanent removal from the premises. It would have been a simple matter to have worded the provision to recite that the family member "shall” be named as the tenant on the renewal lease and not merely that he "shall be entitled to be named” as such (ibid.). In any event, the language of the regulation will not preclude judicial review of its conformance either with governing statutory and case law or with public policy.
Determination of this matter requires that the Court weigh competing policy concerns, assuring the efficient use of scarce
Although not expressly stated in the succession provision, implicit in the regulatory scheme—which notably ties the succession rights of a family member to the landlord’s offer of a renewal lease to the occupant, who is (presumably) a primary resident—is that the dwelling unit will remain in continuous use as a primary residence. As the cases that have considered the issue illustrate, the absence or removal from the premises,
On this record, plaintiff’s contentions concerning inadequate notice pursuant to Rent Stabilization Code (9 NYCRR) § 2524.2 (c) (2) merely serve to elevate form over substance. The question is not whether Matthew maintains a primary residence elsewhere, although the record clearly indicates that he does. The operative question is whether Matthew abandoned the premises. As Supreme Court observed upon denying the parties’ applications for further injunctive relief (order entered May 8, 1991, Carmen B. Ciparick, J.), "It appears from the papers before the court that Matthew has severed all ties to the apartment.” The record that has developed over the course of the ensuing 51/2 years conclusively demonstrates that Matthew has relinquished possession of the apartment and so waived any claim he might have had to succeed to the tenancy of his mother.
Even if the alleged deficiencies in the Termination Notice were to be considered, this Court does not share plaintiff’s interpretation of the succession provision, which would effectively place the right of succession beyond judicial review. As a factual matter, service of the notice of the landlord’s intention not to renew the lease was timely, having been made during November 1989, within 150 and 120 days prior to expiration date of the renewal lease on March 31, 1990. There is no express regulatory requirement for service upon the remaining family member; the right of the estate in the lease is a matter of statute; and Matthew does not come within the regulatory definition of a "tenant”, upon whom service must be made
(see, 170 W. 85th St. Tenants Assn. v Cruz,
To the extent that notice is a material issue in this or similar matters, this Court takes the position that the appropriate standard for assessment of the adequacy of notice is one of reasonableness in view of all attendant circumstances. At the time service of the renewal notice was required to be made (November 1989), the landlord learned that the tenant of record was deceased, became aware that the family member residing with her had removed from the premises and knew that plaintiff’s decedent was represented by counsel, to whom it delivered notice. Plaintiff has conceded that the law firm actually represented the estate and that he was personally aware of the notice served by defendant. Giving due regard to these circumstances, service upon the attorney was entirely reasonable.
With respect to the contents of the notice, which merely recites the fact of the tenant’s death and her son’s removal from the apartment, plaintiff states his objection to the lack of "facts upon which the ensuing nonprimary residence proceeding will be based” (citing First
Sterling Corp. v Zurkowski,
Plaintiff’s argument with respect to the necessity to serve notice on the estate is obscure. He suggests that the service made upon the attorney who ultimately represented the estate of Bettina Black is inadequate to terminate the lease. At the same time, quoting this Court’s decision in
Joint Props. Owners v Deri
(
Accordingly, the order and judgment (one paper) of Supreme Court, New York County (John W. Grow, J.), entered April 3, 1995, which, after nonjury trial,
inter alia,
declared that Matthew Black succeeded to the rent-stabilized tenancy of his deceased mother, Bettina Black, that defendant failed to provide a proper notice of termination of Bettina Black’s lease to Matthew Black, and that the notice served by defendant
Wallach, J. P., Nardelli, Williams and Andrias, JJ., concur.
Order and judgment (one paper) of Supreme Court, New York County, entered April 3, 1995, reversed, without costs, to the extent appealed from, as limited by the briefs, and judgment entered declaring that defendant is entitled to possession of the subject premises as of April 1, 1990.