Stapleton Studios, LLC v. City of New York

• Decision Date: 06 May 2004
• Docket Number: 2202.
• Citation: 2004 NY Slip Op 03670,7 A.D.3d 273,776 N.Y.S.2d 46
• Parties: STAPLETON STUDIOS, LLC, Respondent, v. CITY OF NEW YORK ET AL., Appellants.
• Court: New York Supreme Court — Appellate Division

7 A.D.3d 273

776 N.Y.S.2d 46

2004 NY Slip Op 03670

STAPLETON STUDIOS, LLC, Respondent, v. CITY OF NEW YORK ET AL., Appellants.

2202.

Appellate Division of the Supreme Court of the State of New York, First Department.

May 6, 2004.

Order, Supreme Court, New York County (Emily Jane Goodman, J.), entered August 7, 2003, which, insofar as appealed from, granted petitioner's application for leave to conduct discovery in this CPLR article 78 proceeding to the extent of directing respondents to produce specified categories of documents to petitioner, unanimously reversed, on the law and the facts, without costs, and the application denied.

Pursuant to two successive temporary occupancy permits (collectively, the Permit) granted by respondent City of New York, petitioner Stapleton Studios, LLC (Stapleton) operated a start-up film studio on certain city property at "Homeport" in Staten Island. The Permit contained the following provision, set forth in bold capital letters: "THIS IS A SHORT TERM REVOCABLE OCCUPANCY PERMIT, TERMINABLE AT WILL AT PERMITTOR'S OPTION. PERMITTEE AGREES TO PROMPTLY VACATE THE PREMISES UPON THIRTY (30) DAYS WRITTEN NOTICE OF TERMINATION FROM PERMITTOR OR UPON SUCH LESSER NOTICE AS SPECIFICALLY PROVIDED FOR HEREIN. NO OWNERSHIP, LEASEHOLD OR OTHER PROPERTY INTEREST SHALL VEST IN PERMITTEE BY VIRTUE OF THIS OCCUPANCY PERMIT."

Ultimately, the City concluded that it would not proceed with the Stapleton project, based on concerns about whether Stapleton's financial resources were adequate to support a viable film studio, and about the firm's association with a person who had pleaded guilty to conspiracy to commit fraud. On or about September 4, 2002, the City served Stapleton with a notice stating that the Permit would not be further renewed after its stated expiration date (October 31, 2002), and directing Stapleton to vacate the Homeport property by that date. In response, Stapleton commenced this CPLR article 78 proceeding seeking judicial annulment of the City's decision not to renew the Permit. After joinder of issue, Stapleton made application for leave to conduct discovery pursuant to CPLR 408, and the IAS court, by order entered August 7, 2003, granted such leave to the extent of directing the City to produce specified categories of documents relating to other studio projects with which the City has done business. A Justice of this Court has granted the City leave to appeal from the IAS court's nonfinal order.

We reverse....