Court Opinion

ID: 9942023
Source: CourtListenerOpinion
Date Created: 2024-02-20 14:08:00.653162+00
Date Added: 2024-06-11T13:47:35.955275
License: Public Domain

East Dr. Hous. Dev. Corp. v Lawrence
               2024 NY Slip Op 30470(U)
                   February 12, 2024
           Supreme Court, New York County
        Docket Number: Index No. 161032/2022
                Judge: Nancy M. Bannon
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                                                                                                                        INDEX NO. 161032/2022
  NYSCEF DOC. NO. 159                                                                                             RECEIVED NYSCEF: 02/13/2024

                                   SUPREME COURT OF THE STATE OF NEW YORK
                                             NEW YORK COUNTY
            PRESENT:             HON. NANCY M. BANNON                                               PART                              42
                                                                                      Justice
            ---------------------------------------------------------------------------------X      INDEX NO.          161032/2022
             EAST DRIVE HOUSING DEVELOPMENT CORPORATION,
                                                                                                    MOTION DATE         02/01/2024
                                                         Plaintiff,
                                                                                                    MOTION SEQ. NO.    010 011 012
                                                -v–

                                                                                                      DECISION + ORDER ON
             STEVEN M LAWRENCE, TIFFANY LAWRENCE and IMANI
             MANAGEMENT, INC.                                                                               MOTION
                                     Defendants.
            ---------------------------------------------------------------------------------X

            The following e-filed documents, listed by NYSCEF document number (Motion 010) 129, 130, 131, 132,
            133, 134, 135, 151
            were read on this motion to/for                                                      JUDGMENT - DEFAULT                   .

            The following e-filed documents, listed by NYSCEF document number (Motion 011) 138, 139, 140, 141,
            142, 143, 150
            were read on this motion to/for                                                      JUDGMENT - MONEY                     .

            The following e-filed documents, listed by NYSCEF document number (Motion 012) 121, 144, 145, 146,
            147, 148, 149, 152
            were read on this motion to/for                                                          DISCOVERY                        .

                      In this action arising from an alleged breach of a proprietary lease and breach of
            fiduciary duty, the plaintiff, East Drive Housing Development Corporation, seeks money
            damages for unpaid maintenance charges as well as declaratory and injunctive relief. As
            against defendants Steven Lawrence and Tiffany Lawrence, shareholders and proprietary
            lessees of Unit 3BC of the subject cooperative building at 205-207 East 124th Street in
            Manhattan, the plaintiff seeks a judgment declaring that the plaintiff properly terminated their
            lease for, inter alia, misappropriation of funds of the corporation and enjoining the Lawrences
            from selling the apartment without board approval, use and occupancy from the Lawrences for
            remaining in possession of the apartment without paying maintenance, money damages from
            Steven Lawrence for breach of his fiduciary duty as board treasurer, and money damages from
            defendant Imani Management, Inc., the property manager, for negligence and breach of

             161032/2022 EAST DRIVE HOUSING DEVELOPMENT FUND CORPORATION vs. LAWRENCE,                                  Page 1 of 5
             STEVEN M ET AL
             Motion No. 010 011 012

                                                                           1 of 5
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                                                                                                  INDEX NO. 161032/2022
  NYSCEF DOC. NO. 159                                                                     RECEIVED NYSCEF: 02/13/2024

            fiduciary duty in failing to monitor the allegedly improper conduct and money transfers by
            Steven Lawrence. Defendants Tiffany Lawrence and Imani Management have not answered.

                   The plaintiff previously moved pursuant to CPLR 3212 for partial summary judgment
            against defendant Steven Lawrence, seeking, inter alia, a judgment declaring that the shares of
            that defendant and defendant Tiffany Lawrence and their proprietary lease are canceled, a
            warrant of ejectment and judgment of possession of their unit and an order dismissing any
            affirmative defenses (MOT SEQ 006). The motion was denied for failure of proof.

                   The plaintiff’s motion for, inter alia, use and occupancy (MOT SEQ 007), was granted in
            part by interim order dated August 16, 2023, and was otherwise withdrawn without prejudice.
            The obligation of defendant Steven Lawrence to pay use and occupancy of $1,628.00 per
            month was set forth therein and continues until a further order of this court. In an order dated
            September 6, 2023, the court denied without prejudice the plaintiff’s first motion for leave to
            enter a default judgment against Tiffany Lawrence, allowing her additional time to answer as per
            the parties’ stipulation (MOT SEQ 008). In the same order, the court deemed withdrawn without
            prejudice a motion by the plaintiff to modify the prior use and occupancy order to increase the
            amount to be paid by Steven Lawrence (MOT SEQ 009).

                   Discovery is ongoing between the plaintiff and defendant Steven Lawrence.

                   The plaintiff now moves (1) for a second time for leave to enter a default judgment
            against defendant Tiffany Lawrence (MOT SEQ 010), (2) for a money judgment against
            defendant Steven Lawrence in the sum of $6,512.00 for unpaid use and occupancy and an
            order directing that defendant post a bond for future use and occupancy ,and (3) an order
            extending the Note of Issue filing deadline and compel additional discovery in the form of
            documents, interrogatories and depositions. No opposition is submitted to any of these motions.

                   (1) “On a motion for leave to enter a default judgment pursuant to CPLR 3215, the
            movant is required to submit proof of service of the summons and complaint, proof of the facts
            constituting the claim, and proof of the defaulting party’s default in answering or appearing (see
            CPLR 3215[f]; Allstate Ins. Co. v Austin, 48 AD3d 720, 720).” Atlantic Cas. Ins. Co. v RJNJ
            Services, Inc., 89 AD3d 649 (2nd Dept. 2011). The proof submitted must establish a prima facie
            case. See Silberstein v Presbyterian Hosp., 95 AD2d 773 (2nd Dept. 1983). The plaintiff has

             161032/2022 EAST DRIVE HOUSING DEVELOPMENT FUND CORPORATION vs. LAWRENCE,            Page 2 of 5
             STEVEN M ET AL
             Motion No. 010 011 012

                                                          2 of 5
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                                                                                                     INDEX NO. 161032/2022
  NYSCEF DOC. NO. 159                                                                        RECEIVED NYSCEF: 02/13/2024

            met this burden. The motion is granted, without opposition, as to the causes of action alleged
            against defendant Tiffany Lawrence - the first cause of action, seeking declaratory relief that
            the Lawrence’s proprietary lease was properly terminated, the fourth cause of action for
            injunctive relief enjoining an unauthorized sale of the apartment by the Lawrences, and the fifth
            cause of action for use and occupancy. The plaintiff’s proof includes the complaint, verified by
            Avraham Chein, plaintiff’s treasurer, and affidavit of Chen, demand letter, and a ledger for the
            Lawrence’s unit showing an outstanding balance of $14,843.00 as of December 12, 2023.
            Having failed to answer, defendant Tiffany Lawrence is “deemed to have admitted all factual
            allegations in the complaint and all reasonable inferences that flow from them.” Woodson v
            Mendon Leasing Corp., 100 NY2d 62, 70–71 (2003). However, in light of the nature of the relief
            sought against both Lawrence defendants, including termination of a lease held by both
            defendants and continuing money damages, the relief to be granted on this motion shall await
            disposition of the action as against defendant Steven Lawrence.

                    (2) In MOT SEQ 011, the plaintiff seeks a money judgment against Steven Lawrence in
            the sum of $6,512.00 for the unpaid use and occupancy for October, November and December
            2023, and an order directing that defendant post a bond for future use and occupancy. In light
            of this court’s order of August 16, 2023, the plaintiff is clearly entitled to recover this sum and
            any further unpaid use and occupancy, with interest. However, this motion is denied without
            prejudice to seek that sum and any further unpaid sums, with interest, upon any dispositive
            motion or at trial. In that regard, defendant Steven Lawrence is cautioned that continued
            occupancy of the subject premises is conditioned upon timely compliance with the court-
            directed payment of use and occupancy such that her failure to comply will result in ejectment
            from the premises. See Marbru Assocs. v White, 206 AD3d 562 (1st Dept. 2022); Park Terrace
            Gardens, Inc. v Penkovsky, 100 AD3d 577 (1st Dept. 2012); Rose Assocs. v Johnson, 247 AD2d
            222 (1st Dept. 1998). This is because “[a] party claiming a security interest in a lease must, as a
            condition for asserting its rights in the litigation, comply with the court’s directions to maintain the
            status quo or lose its interest in the property.” 61 West 62nd Owners Corp. v Harkness
            Apartment Owners Corp., 202 AD2d 345, 346 (1st Dept. 1994), citing 313 West 57 Rest. Corp. v
            313 West 57th Associates, 186 AD2d 466 (1st Dept. 1992).

                    (3) In MOT SEQ 012, the plaintiff seeks an order extending discovery deadlines,
            including the Note of Issue filing deadline, and to compel defendant Steven Lawrence to
            produce documents and respond to interrogatories and to compel both Lawrences to appear for

             161032/2022 EAST DRIVE HOUSING DEVELOPMENT FUND CORPORATION vs. LAWRENCE,               Page 3 of 5
             STEVEN M ET AL
             Motion No. 010 011 012

                                                            3 of 5
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  NYSCEF DOC. NO. 159                                                                      RECEIVED NYSCEF: 02/13/2024

            depositions. The motion was filed on December 24, 2023. Since that date, Steven Lawrence
            was deposed, and he provided some document discovery and responded to plaintiff’s
            interrogatories. The court held a status conference and in the resulting order dated January 18,
            2024, directed further document discovery and directed Tiffany Lawrence to appear for a
            deposition on April 2, 2024. The court extended the Note of Issue deadline to May 31, 2024,
            and scheduled an additional status conference for April 11, 2024. Therefore, this motion is
            largely moot. Any further discovery issues may be raised at the next conference.

                   The parties are reminded that CPLR 3126 authorizes the court to sanction a party who
            “refuses to obey an order for disclosure or willfully fails to disclose information which the court
            finds ought to have been disclosed” and that “a failure to comply with discovery, particularly
            after a court order has been issued, may constitute the “dilatory and obstructive, and thus
            contumacious, conduct warranting the striking of the [pleading].” Kutner v Feiden, Dweck &
            Sladkus, 223 AD2d 488, 489 (1st Dept. 1998); see CDR Creances S.A. v Cohen, 104 AD3d 17
            (1st Dept. 2012); Reidel v Ryder TRS, Inc., 13 AD3d 170 (1st Dept. 2004). The court can infer
            willfulness from repeated failures to comply with court orders or discovery demands without a
            reasonable excuse. See LaSalle Talman Bank, F.S.B. v Weisblum & Felice, 99 AD3d 543 (1st
            Dept. 2012); Perez v City of New York, 95 AD3d 675 (1st Dept. 2012); Figiel v Met Food, 48
            AD3d 330 (1st Dept. 2008); Ciao Europa, Inc. v Silver Autumn Hotel Corp., Ltd., 270 AD2d 2 (1st
            Dept. 2000). Furthermore, CPLR 3101(a) provides that “there shall be full disclosure of all
            matter material and necessary in the prosecution or defense of an action” and this language is
            “interpreted liberally to require disclosure, upon request, of any facts bearing on the controversy
            which will assist preparation for trial by sharpening the issues and reducing delay and prolixity.”
            Osowski v AMEC Constr. Mgt., Inc., 69 AD3d 99, 106 (1st Dept. 2009) quoting Allen v Crowell-
            Collier Publ. Co., 21 NY2d 403, 406-407 (1968). Depositions are a method of discovery and the
            failure to appear for or cooperate in the scheduling or taking of a deposition may be a basis for
            the imposition of sanctions under CPLR 3126. See Rocco v Advantage Securities & Protection
            Incorp., 283 AD2d 317 (1st Dept. 2001).

                   Accordingly, it is

                   ORDERED that the plaintiff’s motion for leave to enter a default judgment against
            defendant Tiffany Lawrence (MOT SEQ 010) is granted, without opposition, on the issue of

             161032/2022 EAST DRIVE HOUSING DEVELOPMENT FUND CORPORATION vs. LAWRENCE,             Page 4 of 5
             STEVEN M ET AL
             Motion No. 010 011 012

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  NYSCEF DOC. NO. 159                                                                              RECEIVED NYSCEF: 02/13/2024

            liability, money damages and other relief to be determined at trial or on dispositive motion as
            against defendant Steven Lawrence, and it is further

                      ORDERED that the plaintiff’s motion for a money judgment as against defendant Steven
            Lawrence for unpaid use and occupancy (MOT SEQ 011) is denied without prejudice, and it is
            further

                      ORDERED that the plaintiff’s motion to extend the Note of Issue filing deadline and
            compel further discovery (MOT SEQ 012) is denied moot, without prejudice to raise any further
            discovery issues at the status conference scheduled for April 11, 2024, and it is further

                      ORDERED that the Clerk shall mark the file accordingly.

                      2/12/2024
                        DATE
                                                                                  -~
                                                                                   HON. NANCY M. BANNON
                                                                                             $SIG$

             CHECK ONE:                   CASE DISPOSED                X   NON-FINAL DISPOSITION

                                                          □                                            □
                                          GRANTED             DENIED       GRANTED IN PART              X     OTHER

             APPLICATION:                 SETTLE ORDER                     SUBMIT ORDER

                                                                                                       □
             CHECK IF APPROPRIATE:        INCLUDES TRANSFER/REASSIGN       FIDUCIARY APPOINTMENT              REFERENCE

             161032/2022 EAST DRIVE HOUSING DEVELOPMENT FUND CORPORATION vs. LAWRENCE,                      Page 5 of 5
             STEVEN M ET AL
             Motion No. 010 011 012

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