Fed. Nat'l Mortg. Ass'n v. Tenenbaum
Decision Date | 10 January 2019 |
Docket Number | LT-005247-18NA |
Citation | 63 Misc.3d 313,92 N.Y.S.3d 574 |
Parties | FEDERAL NATIONAL MORTGAGE ASSOCIATION, Petitioner(s) v. David TENENBAUM, Craig Tenenbaum, Philip Tenenbaum, "John Doe," "Jane Doe," Respondent(s). |
Court | New York District Court |
David A. Gallo & Associates, attorneys for Petitioner, 99 Powerhouse Road - First Floor, Roslyn Heights, New York 11577, (516) 583-5330; Nassau/Suffolk Law Services Committee, attorneys for Respondent David Tenenbaum, One Helen Keller Way, 5th Floor, Hempstead, New York 11550, (516) 292-8100; Craig Tenenbaum, Respondent, 39 Anchor Street, Apt. 39K, Freeport, NY; Philip Tenenbaum, Respondent, 39 Anchor Street, Apt. 39K, Freeport, NY; John Doe, Respondent, 39 Anchor Street, Apt. 39K, Freeport, NY, Jane Doe, Respondent, 39 Anchor Street, Apt. 39K, Freeport, NY.
Scott Fairgrieve, J.Petitioner, Federal National Mortgage Association (hereinafter referred to as Federal), brings this holdover proceeding to evict David Tenenbaum, Craig Tenenbaum, Philip Tenenbaum, John Doe and Jane Doe. This premises is located at 39 Anchor Street, Apt. 39K, Freeport, New York, which is a cooperative apartment (hereinafter referred to as "the Premises"). Anchors Edge Owners Corp. (hereinafter referred to as Anchors), owns the premises at 39 Anchor Street, Freeport, New York.
The holdover Petition, dated September 10, 2018, alleges that Respondents' lease was terminated on September 6, 2016, pursuant to RPAPL § 711(1). Petitioner refers to Exhibit "A" making it the owner of the premises. Exhibit "A" is a stock certificate issued by Anchors to Federal for 225 shares and the Proprietary Lease for Apartment 39K.
Paragraphs 5 and 9 of the Petition allege that a 10 day notice to quit was served upon Respondents.
The Certificate of Sale and Fact is attached to the Petition as Exhibit "G". This Certificate states that JP Morgan Chase Bank, National Association became the owner of the 225 shares and Proprietary Lease for the Premises for the sum of $275,464.06 on December 10, 2013 as the result of a public auction. The sale was done in "accordance with the Terms of Sale which were available to all bidders."
The Ten Day Notice to Quit states that Petitioner received ownership of the stock and lease concerning the Premises pursuant to an Assignment of Bid, dated January 7, 2014 which resulted from a sale conducted in accordance with Article 9 of the UCC. The Ten Day Notice states in part:
"Pursuant to said sale, your proprietary lease and shares of stock appurtenant to the premises have been cancelled. You are therefore occupying the premises as a holdover occupant.
FEDERAL NATIONAL MORTGAGE ASSOCIATION , as owner of the property demands that you and all others occupying the Premises quit same and surrender possession thereof to the undersigned:
Petitioner provides the Assignment of Bid, dated January 7, 2014, which establishes that JP Morgan Chase assigned its rights, title, and interest in the foreclosure sale, held on December 10, 2013, to Petitioner.
Respondent, David Tenenbaum, moves by the motion dated September 23, 2018, for an order to dismiss this summary proceeding on the following grounds set forth in the Affirmation of attorney Daniel A. Okrent, dated September 23, 2018, on the following grounds:
Petitioner submits the Affirmation in Opposition to Cross Motion and for Judgment of Possession, dated October 17, 2018. Petitioner posits that Judge Bjorneby's decision was correct because at that time the stock and proprietary lease were not yet transferred to Petitioner. It is contended that the situation has been corrected by Anchors transferring the stock and lease to Petitioner. Thus, Petitioner argues that it has standing to bring this proceeding pursuant to RPAPL § 711(1) which states:
Petitioner further argues that Respondents' lease was terminated in a UCC Article 9 foreclosure and therefore Respondents are holdover tenants in accordance with the rationale of Federal Home Loan Mortgage Association v. Perez , 40 Misc. 3d 1, 968 N.Y.S.2d 317 (2013).
Respondent submits the attorney Reply Affirmation, dated October 28, 2018. Respondent argues that this proceeding cannot be maintained under the RPAPL because the stock and lease in the cooperative are personal and not real property. Counsel urges that the subsequent transfer of the 225 shares of stock and proprietary lease does not change the rationale of Judge Bjorneby's decision.
Respondent further contends that since Respondents never received any notice from Anchors or from Fannie Mae, and there was no proceeding which terminated his lease, the lease is still in effect and RPAPL § 711(1) is inapplicable.
Petitioner submits the Sur-Reply Affirmation in Opposition to Respondent's Motion and in Support of Cross Motion for Judgment and Warrant dated, November 5, 2018. Petitioner states that no notice was served upon Respondent to commence a proceeding pursuant to RPAPL § 711(1) because none is required. Petitioner asserts that Respondent is a holdover tenant and that Respondent was never a tenant of Petitioner. However, since Respondent is a holdover tenant, Petitioner may maintain a summary proceeding pursuant to RPAPL § 711(1).
A review of the relevant portions of the proprietary lease between Anchors (lessor) and the petitioner is necessary to determine the parties' rights and interests. The sections are as follows:
The above clause appears to transfer Anchors right to commence summary proceedings to the Petitioner against any third party (Respondent) who is in possession of the apartment.
The following clause provides for a transfer of the shares and lease to an individual designated by the Secured Party (Petitioner) provided the terms and conditions of this subdivision are complied with.
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