Court Opinion

ID: 9962537
Source: CourtListenerOpinion
Date Created: 2024-04-23 20:10:16.987512+00
Date Added: 2024-06-11T08:19:01.079157
License: Public Domain

Third Ave NY Realty LLC v 1992 Third Realty LLC
               2024 NY Slip Op 31325(U)
                     April 16, 2024
           Supreme Court, New York County
        Docket Number: Index No. 160993/2023
                   Judge: Judy H. Kim
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                                                                                                                     INDEX NO. 160993/2023
  NYSCEF DOC. NO. 88                                                                                           RECEIVED NYSCEF: 04/16/2024

                                   SUPREME COURT OF THE STATE OF NEW YORK
                                             NEW YORK COUNTY
            PRESENT:             HON. JUDY H. KIM                                                PART                              04
                                                                                      Justice
            ---------------------------------------------------------------------------------X   INDEX NO.          160993/2023
             THIRD AVE NY REALTY LLC,
                                                                                                 MOTION DATE         11/08/2023
                                                         Petitioner,
                                                                                                 MOTION SEQ. NO.         001
                                                 -v-
             1992 THIRD REALTY LLC,                                                                DECISION + ORDER ON
                                                                                                         MOTION
                                                         Respondent.
            ---------------------------------------------------------------------------------X

            The following e-filed documents, listed by NYSCEF document number (Motion 001) 25, 27, 36, 39, 40,
            41, 42, 43, 44, 45, 46, 47, 48, 49, 50, 51, 52, 53, 54, 55, 56, 57, 58, 59, 60, 61, 62, 63, 64, 65, 66, 67, 68,
            69, 70, 71, 72, 73, 74, 75, 76, 77, 78, 79, 80
            were read on this motion for                                                  JUDGMENT - DECLARATORY                   .

                      Upon the application of petitioner, this special proceeding is discontinued over objection.

                      Petitioner commenced this RPAPL §881 action on November 8, 2023, seeking a license to

            access to the building located at 1992 3rd Avenue, New York, New York (the “Building”) in order

            to, inter alia, perform a preconstruction survey and install roof protection and scaffolding in

            connection with a construction project on petitioner’s property, adjacent to the Building.

                      On November 21, 2023, respondent brought a plenary action against petitioner in this court,

            under index number 161382/2023, alleging that it had entered into a License and Access

            Agreement (the “License”) with petitioner’s predecessor-in-interest under which petitioner was

            entitled to a license to perform certain work on respondent’s property contingent upon petitioner’s

            satisfaction of various conditions. The conditions included, as pertinent here, that petitioner would

            pay respondent’s reasonable attorney and design professional fees, post a bond in the sum of

            $1,000,000.00 to protect respondent from property damage and ensure reimbursement of its

             160993/2023 THIRD AVE NY REALTY LLC vs. 1992 THIRD REALTY LLC                                           Page 1 of 4
             Motion No. 001

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                                                                                                 INDEX NO. 160993/2023
  NYSCEF DOC. NO. 88                                                                     RECEIVED NYSCEF: 04/16/2024

            reasonable attorney and design professional fees, and indemnify respondent for any losses, suits,

            and damages associated with petitioner’s work. Respondent further alleged that petitioner had not

            satisfied these conditions precedent and, moreover, that petitioner had performed work on its own

            property, including removing ground water, which damaged the Building. Respondent’s complaint

            asserted claims sounding in strict liability, negligence, breach of contract, trespass, and private

            nuisance and sought damages of at least $1,000,000.00 plus professional fees, attorneys’ fees, and

            costs, as well as an injunction precluding petitioner from conducting further work until it

            remediated the harm it had caused to the Building.

                   Thereafter, on February 28, 2024, respondent filed an “Opposition to Order to Show

            Cause” in this special proceeding, arguing that petitioner is not entitled to a license under RPAPL

            §881 because the parties had already negotiated the License (which petitioner had breached) and

            that petitioner was strictly liable to respondent for its breaches of the Building Code which had

            damaged the Building. Respondent demanded that this Court “enforce the terms of the parties’

            existing license and access agreement,” and order petitioner to repair all damages to the Building,

            post a $1,000,000.00 bond, and pay respondent past-due license fees, engineering fees, and seismic

            monitoring costs, as well as reasonable attorneys’ fees in the amount of $183,219.50.

                   Petitioner filed a notice of discontinuance of this special proceeding on March 25, 2024

            (See NYSCEF Doc. No. 82). Respondent objected, by letter, to this notice of discontinuance,

            arguing that petitioner could not unilaterally discontinue this action under CPLR §3217(a) after

            respondent had filed its opposition (NYSCEF Doc. No. 83). Petitioner replied with its own letter

            arguing that petitioner’s opposition was not a “responsive pleading” under that statute (NYSCEF

            Doc. No. 84). On April 10, 2022, the Court held a conference with the parties, on the record, at

            which it requested arguments as to the propriety of discontinuing this special proceeding pursuant

             160993/2023 THIRD AVE NY REALTY LLC vs. 1992 THIRD REALTY LLC                       Page 2 of 4
             Motion No. 001

                                                           2 of 4
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                                                                                                  INDEX NO. 160993/2023
  NYSCEF DOC. NO. 88                                                                      RECEIVED NYSCEF: 04/16/2024

            to CPLR §3217(b) and, specifically, how respondent would be prejudiced by the discontinuance

            of this special proceeding, if at all. Respondent’s reply to that question was, in sum and substance,

            that it would be prejudiced should this proceeding be discontinued without an award of its legal

            fees incurred in connection with its opposition to the petition, citing 269-273 14th St N.Y. Corp.

            v Stein, 221 AD3d 807 (2d Dept 2023).

                                                       DISCUSSION

                   The decision to grant or to deny an application pursuant to CPLR §3217(b) is within the

            Court’s sound discretion (See Tucker v Tucker, 55 NY2d 378, 383-84 [1982]). Ordinarily, a party

            cannot be compelled to litigate and, absent special circumstances such as particular prejudice to

            the defendant or “other improper consequences flowing from [the] discontinuance,” an application

            to discontinue an action should be granted (Id.).

                   Petitioner’s application is granted, as no prejudice to respondent results from the

            discontinuance of this action. As an initial matter, respondent is not entitled to legal fees under

            RPAPL §881, as such an award is predicated upon the issuance of a license to petitioner (See 419

            BR Partners LLC v Zabar, 209 AD3d 604, 604-05 [1st Dept 2022] [“[i]n the absence of any

            statutory authority permitting the court to grant such fees where no license has been issued, an

            award of legal and professional fees is not authorized”]; but see W. End Ave Dev. LLC v

            Ngamwajasat, 79 Misc 3d 1231(A) [Sup Ct, Kings County 2023]), and no license has been granted

            here. As such, 269-273 14th St N.Y. Corp. v Stein, in which petitioner was granted such a license

            (269-273 14th St N.Y. Corp. v Stein, 221 AD3d 807, 808 [2d Dept 2023]), has no bearing.

                   Finally, to the extent that respondent seeks an immediate award of its fees and costs due

            under the parties’ License Agreement (See NYSCEF Doc. No. 80 [Memo. Of Law. In Opp. at pp.

            21-22]), respondent seeks the same relief in its plenary action, which it commenced prior to filing

             160993/2023 THIRD AVE NY REALTY LLC vs. 1992 THIRD REALTY LLC                         Page 3 of 4
             Motion No. 001

                                                           3 of 4
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  NYSCEF DOC. NO. 88                                                                             RECEIVED NYSCEF: 04/16/2024

            its opposition herein. Therefore, respondent will have a full opportunity to seek these fees as part

            of its plenary action against petitioner, and will suffer no prejudice by the discontinuance of this

            special proceeding without an award of such fees.

                    Accordingly, it is

                    ORDERED that petitioner’s application to discontinue this action is granted and it is

            hereby discontinued; and it is further

                    ORDERED that petitioner is directed to serve a copy of this decision and order, with notice

            of entry, on respondent as well as on the Clerk of the Court (60 Centre St., Room 141B) and the

            Clerk of the General Clerk’s Office (60 Centre St., Room 119) within ten days from entry; and it

            is further

                    ORDERED that such service upon the Clerk of the General Clerk’s Office shall be made

            in accordance with the procedures set forth in the Protocol on Courthouse and County Clerk

            Procedures for Electronically Filed Cases (accessible at the “E-Filing” page on the court’s website

            at the address www.nycourts.gov/supctmanh).

                    This constitutes the decision and order of the Court.

                    4/16/2024
                      DATE                                                          HON. JUDY H. KIM, J.S.C.
             CHECK ONE:                  X   CASE DISPOSED                   NON-FINAL DISPOSITION

                                         X   GRANTED             DENIED      GRANTED IN PART             OTHER

             APPLICATION:                    SETTLE ORDER                    SUBMIT ORDER

             CHECK IF APPROPRIATE:           INCLUDES TRANSFER/REASSIGN      FIDUCIARY APPOINTMENT       REFERENCE

             160993/2023 THIRD AVE NY REALTY LLC vs. 1992 THIRD REALTY LLC                             Page 4 of 4
             Motion No. 001

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