Agudas Chasidei Chabad of United States v. Congregation Lubavitch, Inc.

• Decision Date: 25 April 2020
• Docket Number: Index No. 106105/2011,Index No 106106/2011,Index No 106107/2011
• Citation: 2020 NY Slip Op 50535 (U)
• Parties: Agudas Chasidei Chabad of the United States, Petitioner-Licensor, v. Congregation Lubavitch, Inc., Zalman Lipskier, individually and in his capacity as Gabbai, in his capacity as Trustee of CLI, and in his representative capacity to President of Congregation Lubavitch of Agudas Chasidei Chabad, Avrohom Holtzberg, individually and in his capacity as Gabbai and in his capacity as Trustee of CLI, Menachem Gerlitzky, individually and in his capacity as Gabbai, in his capacity as Trustee of CLI, Yosef Losh, individually and in his capacity as Gabbai, in his capacity as Trustee of CLI, Sholom Ber Kievman, individual, as an employee of CLI and as an employee of Congregation Lubavitch, purportedly d/b/a Lubavitch World Headquarters, Congregation Lubavitch of Agudas Chasidei Chabad and Congregation Lubavitch, purportedly d/b/a Lubavitch World Headquarters, Respondents-Licensees. Merkos L'Inyonei Chunuch, Petitioner-Licensor, v. Congregation Lubavitch, Inc., Zalman Lipskier, individually and in his capacity as Gabbai, in his capacity as Trustee of CLI, and in his representative capacity to President of Congregation Lubavitch of Agudas Chasidei Chabad, Avrohom Holtzberg, individually and in his capacity as Gabbai and in his capacity as Trustee of CLI, Menachem Gerlitzky, individually and in his capacity as Gabbai, in his capacity as Trustee of CLI, Yosef Losh, individually and in his capacity as Gabbai, in his capacity as Trustee of CLI, Sholom Ber Kievman, individual, as an employee of CLI and as an employee of Congregation Lubavitch, purportedly d/b/a Lubavitch World Headquarters, Congregation Lubavitch of Agudas Chasidei Chabad and Congregation Lubavitch, purportedly d/b/a Lubavitch World Headquarters, Respondents-Licensees. Merkos L'Inyonei Chinuch Petitioner-Licensor, v. Congregation Lubavitch, Inc., Zalman Lipskier, individually and in his capacity as Gabbai, in his capacity as Trustee of CLI, and in his representative capacity to President of Congregation Lubavitch of Agudas Chasidei Chabad, Avrohom Holtzberg, individually and in his capacity as Gabbai and in his capacity as Trustee of CLI, Menachem Gerlitzky, individually and in his capacity as Gabbai, in his capacity as Trustee of CLI, Yosef Losh, individually and in his capacity as Gabbai, in his capacity as Trustee of CLI, Sholom Ber Kievman, individual, as an employee of CLI and as an employee of Congregation Lubavitch, purportedly d/b/a Lubavitch World Headquarters, Congregation Lubavitch of Agudas Chasidei Chabad and Congregation Lubavitch, purportedly d/b/a Lubavitch World Headquarters, 302-304 Kingston Avenue, Southest Room of the Second Floor, as more specifically delineated by the non-cross-hatched area on the diagram annexed hereto as Exhibit "1", Brooklyn, New York 11213 ("the premises") Respondents-Licensees.
• Court: New York Supreme Court

2020 NY Slip Op 50535(U)

Agudas Chasidei Chabad of the United States, Petitioner-Licensor, v. Congregation Lubavitch, Inc., Zalman Lipskier,

individually and in his capacity as Gabbai,

in his capacity as Trustee of CLI,

and in his representative capacity to President

of Congregation Lubavitch of Agudas Chasidei Chabad,

Avrohom Holtzberg, individually and in his capacity

as Gabbai and in his capacity as Trustee of CLI,

Menachem Gerlitzky, individually and in his capacity as Gabbai,

in his capacity as Trustee of CLI, Yosef Losh,

individually and in his capacity as Gabbai,

in his capacity as Trustee of CLI, Sholom Ber Kievman,

individual, as an employee of CLI and

as an employee of Congregation Lubavitch,

purportedly d/b/a Lubavitch World Headquarters,

Congregation Lubavitch of Agudas Chasidei Chabad

and Congregation Lubavitch,

purportedly d/b/a Lubavitch World Headquarters, Respondents-Licensees.

Merkos L'Inyonei Chunuch, Petitioner-Licensor, v. Congregation Lubavitch, Inc., Zalman Lipskier,

individually and in his capacity as Gabbai,

in his capacity as Trustee of CLI,

and in his representative capacity to President

of Congregation Lubavitch of Agudas Chasidei Chabad,

Avrohom Holtzberg, individually and in his capacity

as Gabbai and in his capacity as Trustee of CLI,

Menachem Gerlitzky, individually and in his capacity as Gabbai,

in his capacity as Trustee of CLI, Yosef Losh,

individually and in his capacity as Gabbai,

in his capacity as Trustee of CLI, Sholom Ber Kievman,

individual, as an employee of CLI and

as an employee of Congregation Lubavitch,

purportedly d/b/a Lubavitch World Headquarters,

Congregation Lubavitch of Agudas Chasidei Chabad

and Congregation Lubavitch,

purportedly d/b/a Lubavitch World Headquarters, Respondents-Licensees.

Merkos L'Inyonei Chinuch Petitioner-Licensor, v. Congregation Lubavitch, Inc., Zalman Lipskier,

individually and in his capacity as Gabbai,

in his capacity as Trustee of CLI,

and in his representative capacity to President

of Congregation Lubavitch of Agudas Chasidei Chabad,

Avrohom Holtzberg, individually and in his capacity

as Gabbai and in his capacity as Trustee of CLI,

Menachem Gerlitzky, individually and in his capacity as Gabbai,

in his capacity as Trustee of CLI, Yosef Losh,

individually and in his capacity as Gabbai,

in his capacity as Trustee of CLI, Sholom Ber Kievman,

individual, as an employee of CLI and

as an employee of Congregation Lubavitch,

purportedly d/b/a Lubavitch World Headquarters,

Congregation Lubavitch of Agudas Chasidei Chabad

and Congregation Lubavitch,

purportedly d/b/a Lubavitch World Headquarters,

302-304 Kingston Avenue, Southest Room of the Second Floor,

as more specifically delineated by the non-cross-hatched area

on the diagram annexed hereto as Exhibit "1", Brooklyn,

New York 11213 ("the premises") Respondents-Licensees.

Index No. 106105/2011

Index No 106106/2011

Index No 106107/2011

Supreme Court, Kings County

Decided on April 25, 2020

Attorneys for Petitioners:

The Abramson Law Group

570 Lexington Avenue

23rd Floor

New York, NY 10022

Attorneys for all Respondents except for Losh and Gerlitzky:

Zane and Rudofsky

The Starrett Lehigh Building

601 West 26th Street

New York, NY 10001

Attorney for Respondent Gerlitzky:

Noson A. Kopel, Esq.

1653 President Street

Brooklyn, NY 11213

Harriet L. Thompson, J.

FACTUAL HISTORY

The real property laws in the State and City of New York are complex and often misconstrued by laypersons and lawyers alike. These summary proceedings to recover possession of real property would be a simple licensee holdover proceeding pursuant to RPAPL §713 (7), however, these particular properties have historical significance for all of the parties because the real properties here are owned and controlled by religious corporations organized under the laws of the State of New York. As in any action or proceeding involving religious institutions, the applicable rules of law and regulations, and their application to such institutions, excludes any consideration by the courts of the religious doctrinal differences and beliefs between the parties. As such, a historical prospective of the most significant part of this nearly two decade old controversy between these parties and the procedural history of their litigation for this determination, albeit lengthy, is necessary. The litigation history determined specific material questions of fact and law including but not limited to the determinations made by the Supreme Court, Kings County (Harkavy, J., retired and deceased), and the Appellate Division, Second Department. Although the controversy is deeply rooted in a difference in doctrinal theology, the legal issue can be stated succinctly: do the Petitioners have the authority to recover possession of the demised premises herein under applicable law of this state.

About the parties and as will be shown from the record, Agudas Chasidei Chabad of the United States (hereinafter "Agudas") is a religious corporation that was incorporated in 1940 to, inter alia, establish, maintain, and conduct a place of worship in accordance with the Chasidic ritual and mode of worship of the Jewish Orthodox faith, and to acquire real property for that purpose. Following its incorporation, Agudas purchased 770 Eastern Parkway (hereinafter "770"), in Kings County, which became, among other things, the central Synagogue of the Lubavitch movement.

Merkos L'Inyonei Chinuch (hereinafter "Merkos"), a non-profit corporation, was incorporated in 1942, to operate as the educational arm of the Lubavitch movement. Following its incorporation, Merkos acquired the deed to 784-788 Eastern Parkway, (hereinafter "784-788"), the property adjacent to 770. The two properties are now adjoined, and the central Synagogue spans both buildings.

CLI was incorporated in 1996 as a non-profit corporation, for the purpose of succeeding and continuing the work of the unincorporated religious congregation known as Congregation Lubavitch, whose members regularly attended religious worship and studies at the Synagogue.

The Gabboim are the "managers" of the central Synogogue, as will be more fully discussed below.

On December 10, 2004, Merkos commenced a Supreme court action against Congregation Lubavitch, Inc., Mendel Sharf, Yaacov Thaler, and Bentizon Frishman for injunctive relief with respect to the defacing, destruction and/or removal of a controversially worded plaque that plaintiffs sought to affix to 784-788, which commemorated the laying of a cornerstone by Grand Rebbe Menachem Mendel Shneerson, the grand rabbi and spiritual leader of the Lubavitch movement from 1951 until his death in 1994 (hereinafter referred to as the "Grand Rebbe" or "Rebbe") and which referred to the Grand Rebbe in Hebrew terms transcribed in English "of blessed memory." The aforementioned defendants were arrested and prosecuted for the unauthorized removal of the plaque. In addition at that time, an ex-parte TRO was issued by the Hon. Yvonne Lewis which enjoined individual defendants from interfering with Merkos' right to install a new plaque with the "of blessed memory" reference or from removing or damaging said plaque. The TRO further directed that the New York City Police Department "take all steps as are reasonably necessary" to enforce the terms of the TRO. Despite the TRO, on December 15, 2004, while workers were installing the new plaque, another altercation occurred and additional arrests were made. From the inception of this lengthy controversy, CLI and certain of its members opposed the installation of a worded plaque on the cornerstone of the buildings and further claimed an interest in the property pursuant to a constructive or 'community trust' and accordingly, had authority to determine the use and occupancy of the property.

Justice Harkavy, in a commendable and skillfully written decision, symbolic of so many of his decisions, wrote "[a] brief examination of the history of the Lubavitch movement and the life and legacy of the Grand Rebbe is helpful in understanding this controversy. "The Lubavitch movement descended from the greater Chasidic movement within the Orthodox Jewish faith in eighteenth-century Eastern Europe when the Chasidic movement branched out into separate groups under the leadership of its own "Rebbe." Among these Rebbes was Schneur Zalman, the founder of a movement known either as Lubavitch, named after the Russian city where the movement was centered or Chabad, an acronym of the Hebrew words "chochma" (wisdom), "binah" (comprehension) and "da'at" (knowledge). Following the death of Rebbe Schneur Zalman, the Lubavitch community continued to be led by a single spiritual leader known as the Grand Rebbe."

"At the outbreak of the Second World War, Rebbe Joseph Isaac Shneerson (the "previous Rebbe"), the sixth in the line of Lubavitch Grand Rebbes, emigrated from Europe to the United States and eventually settled in the Crown Heights, neighborhood of Brooklyn. The previous Rebbe thereafter established and became president of Agudas pursuant to the Religious Corporation Law on July 25, 1940. Agudas' certificate of incorporation provided that the corporation was created to establish, maintain and conduct a place of worship in accordance with the Chasidic ritual for its members, their families and friends and to acquire real property for this objective. Following its incorporation, Agudas purchased 770, which became the official residence of the previous Rebbe, the location of the central Synagogue of the Lubavitch movement, and Agudas' worldwide headquarters. This building has since taken on such a spiritual importance that replicas thereof have been constructed for use as Synagogues in Israel, Australia, Italy, Brazil and Argentina. Agudas has held the deed and thus has been title owner of 770 from 1940 to this day".

"The previous Rebbe, who died in 1950 without sons, was succeeded as leader of the Lubavitch movement by the Grand Rebbe, the previous Rebbe's son-in-law. Thereafter, the...