Court Opinion

ID: 9958754
Source: CourtListenerOpinion
Date Created: 2024-04-09 20:10:57.949397+00
Date Added: 2024-06-11T08:15:49.279505
License: Public Domain

Matter of Cheng v State of New York Div. of Hous. &
      Community Renewal Off. of Rent Admin.
               2024 NY Slip Op 31072(U)
                     March 29, 2024
           Supreme Court, New York County
        Docket Number: Index No. 155861/2023
                  Judge: John J. Kelley
Cases posted with a "30000" identifier, i.e., 2013 NY Slip
 Op 30001(U), are republished from various New York
 State and local government sources, including the New
  York State Unified Court System's eCourts Service.
 This opinion is uncorrected and not selected for official
                       publication.
                                                                                                                     INDEX NO. 155861/2023
  NYSCEF DOC. NO. 41                                                                                           RECEIVED NYSCEF: 03/30/2024

                                   SUPREME COURT OF THE STATE OF NEW YORK
                                             NEW YORK COUNTY
            PRESENT:             HON. JOHN J. KELLEY                                             PART                              56M
                                                                                      Justice
            ---------------------------------------------------------------------------------X   INDEX NO.          155861/2023
             In the Matter of
                                                                                                                     8/31/2023
             STEPHEN CHENG,                                                                      MOTION DATE         11/08/2023

                                                         Petitioner,                             MOTION SEQ. NO.      001, 003

                                                 -v-
             STATE OF NEW YORK DIVISION OF HOUSING AND
                                                                                                   DECISION + ORDER ON
             COMMUNITY RENEWAL OFFICE OF RENT
             ADMINISTRATION,                                                                             MOTION

                                                         Respondent.
            ---------------------------------------------------------------------------------X

            The following e-filed documents, listed by NYSCEF document number (Motion 001) 16, 17, 18, 19, 20,
            22
            were read on this motion to/for                                             CONSOLIDATE/JOIN FOR TRIAL                 .

            The following e-filed documents, listed by NYSCEF document number (Motion 003) 30, 31, 32, 33, 34,
            35, 36, 37, 38, 39
            were read on this motion to/for                                                 INTERVENTION/DISMISSAL                 .

                      In this proceeding pursuant to CPLR article 78, the tenant petitioner seeks judicial review

            of a May 11, 2023 New York State Division of Housing and Community Renewal (NYS DHCR)

            determination denying, in part, his Petition for Administrative Review (PAR) of a Rent

            Administrator’s May 28, 2021 decision that was adverse to him. The May 11, 2023

            determination was made pursuant to a June 14, 2022 order (Love, J.), remitting the matter to

            the NYS DHCR for reconsideration (see Matter of Cheng v State of N.Y. Div. of Hous. &

            Community Renewal, Index No. 150439/2022 [Sup Ct, N.Y. County, Jun. 14, 2022]).

                      The petitioner now moves pursuant to CPLR 602(a) to consolidate this proceeding with a

            related proceeding entitled Matter of 30 West 88 Realty, LLC v New York State Div. of Hous. &

            Community Renewal, pending before this court under Index No. 156848/2023, in which the

             155861/2023 IN THE MATTER OF THE APPLICATION OF STEPHEN CHENG vs. STATE OF NEW                          Page 1 of 5
             YORK DIVISION OF HOUSING AND COMMUNITY RENEWAL OFFICE OF RENT
             ADMINISTRATION
             Motion No. 001

                                                                           1 of 5
[* 1]
                                                                                                  INDEX NO. 155861/2023
  NYSCEF DOC. NO. 41                                                                      RECEIVED NYSCEF: 03/30/2024

            petitioner’s landlords, 30 West 88 Realty, LLC, and SM 30W88, LLC (the landlords), seek

            judicial review of the same NYS DHCR determination (MOT SEQ 001). The NYS DHCR does

            not oppose the motion. The landlords move pursuant to CPLR 1012(a) for leave to intervene in

            the instant proceeding, and thereupon pursuant to CPLR 3211(a)(10) to dismiss the petition

            herein for failure to join them as necessary parties (MOT SEQ 003). The petitioner and NYS

            DHCR oppose that branch of the motion seeking dismissal of the petition. The petitioner’s

            motion is granted. The landlords’ motion is granted to the extent that they are granted leave to

            intervene in the proceeding commenced by the petitioner, and their motion is otherwise denied.

                   “Consolidation is generally favored in the interest of judicial economy and ease of

            decision-making where cases present common questions of law and fact, ‘unless the party

            opposing the motion demonstrates that a consolidation will prejudice a substantial right’” (Raboy

            v McCrory Corp., 210 AD2d 145 [1st Dept 1994], quoting Amtorg Trading Corp. v Broadway &

            56th St. Assoc., 191 AD2d 212, 213 [1st Dept 1993]). The issue raised in both the related

            proceeding and this proceeding are whether the May 11, 2023 determination was arbitrary and

            capricious or affected by an error of law. There no indication that consolidation of the two

            proceedings will prejudice a substantial right of any party (see Amcan Holdings, Inc. v Torys

            LLP, 32 AD3d 337 [1st Dept 2006]).

                   The landlords’ intervention in the proceeding commenced by the petitioner is warranted

            here, as they clearly have a direct and substantial interest in the outcome of the litigation (see

            CPLR 1012[a][2]; Burlingame v State of New York, 42 AD3d 923, 924 [4th Dept 2007]).

            Dismissal, however, is not warranted. Where a necessary party has not been joined, the court

            may not dismiss the matter for failure to join a necessary party, even where the applicable

            limitations period has lapsed. “When a person who should be joined . . . has not been made a

            party and is subject to the jurisdiction of the court, the court shall order him summoned” (CPLR

            1001[b]). Hence, the court must direct the unnamed necessary party to be joined, subject to its

             155861/2023 IN THE MATTER OF THE APPLICATION OF STEPHEN CHENG vs. STATE OF NEW        Page 2 of 5
             YORK DIVISION OF HOUSING AND COMMUNITY RENEWAL OFFICE OF RENT
             ADMINISTRATION
             Motion No. 001

                                                          2 of 5
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                                                                                                  INDEX NO. 155861/2023
  NYSCEF DOC. NO. 41                                                                      RECEIVED NYSCEF: 03/30/2024

            assertion of all applicable defenses and affirmative defenses, including the statute of limitations

            (see CPLR 1001[a]; Windy Ridge Farm v Assessor of Town of Shandaken, 11 NY3d 725, 727

            [2008]; Matter of Red Hook/Gowanus Chamber of Commerce v New York City Bd. of Stds. &

            Appeals, 5 NY3d 452 [2005]; Rosioreanu v New York City Off. of Collective Bargaining, 78

            AD3d 401, 401 [1st Dept 2010]; Matter of 37 W. Realty Co. v New York City Loft Bd., 72 AD3d

            406, 406 [1st Dept 2010]; Matter of Lazzari v Town of Eastchester, 62 AD3d 1002 [2d Dept

            2009], affd 20 NY3d 214 [2012]; Friedland v Hickox, 60 AD3d 426, 426 [1st Dept 2009]). Thus,

            even had the landlords not intervened, the court was required to order their joinder in any event.

            The court notes that the landlords, whether appearing via intervention or joinder, could raise the

            issue of whether the proceeding was time-barred as to it, and that dismissal of the entirety of the

            petition should eventuate. The landlords, however, named and joined the petitioner as a

            respondent in the related proceeding, which is now consolidated into the initial proceeding, and

            both proceedings will obligate the court to review the NYS DHCR’s determination (see CPLR

            7803[3]). These facts warrant the conclusion that, even if the landlords were dismissed from the

            petitioner’s proceeding despite being necessary parties, that matter would have been able to

            proceed even in their absence (see CPLR 1001[b][5] [court must consider whether an effective

            judgment may be rendered in the absence of the party not joined]; Matter of 27th St. Block

            Assn. v Dormitory Auth. of State of N.Y., 302 AD2d 155, 163 [1st Dept 2002]).

                   Accordingly, it is,

                   ORDERED that the motion of 30 West 88 Realty, LLC, and SM 30W88, LLC (SEQ 003),

            is granted to the extent that they are permitted to intervene as respondents in the proceeding

            entitled Matter of Cheng v State of New York Division of Housing and Community Renewal,

            commenced in the Supreme Court, New York County, under Index No. 155861/2023, and their

            motion is otherwise denied; and it is further,

             155861/2023 IN THE MATTER OF THE APPLICATION OF STEPHEN CHENG vs. STATE OF NEW       Page 3 of 5
             YORK DIVISION OF HOUSING AND COMMUNITY RENEWAL OFFICE OF RENT
             ADMINISTRATION
             Motion No. 001

                                                             3 of 5
[* 3]
                                                                                                        INDEX NO. 155861/2023
  NYSCEF DOC. NO. 41                                                                             RECEIVED NYSCEF: 03/30/2024

                     ORDERED that the petitioner’s motion (MOT SEQ 001) is granted, the proceeding

            entitled Matter of 30 West 88 Realty, LLC v New York State Division of Housing and Community

            Renewal, commenced in the Supreme Court, New York County, under Index No. 156848/2023,

            and pending before Justice John J. Kelley, in Part 56, is fully consolidated into the proceeding

            entitled Matter of Cheng v State of New York Division of Housing and Community Renewal,

            commenced in the Supreme Court, New York County, under Index No. 155861/2023, and

            pending before Justice John J. Kelley, in Part 56; and it is further,

                     ORDERED that the petition filed in connection with the proceeding entitled Matter of 30

            West 88 Realty, LLC v New York State Division of Housing and Community Renewal,

            commenced in the Supreme Court, New York County, under Index No. 156848/2023, is deemed

            to be a cross petition in the consolidated proceeding entitled Matter of Cheng v State of New

            York Division of Housing and Community Renewal, pending n the Supreme Court, New York

            County, under Index No. 155861/2023; and it is further,

                     ORDERED that the caption of the consolidated proceeding shall be as follows:

                     ----------------------------------------------------------------x
                     In the Matter of

                     STEPHEN CHENG,

                                                  Petitioner/Cross-Respondent,
                                                                                         Index No. 152368/2023
                                        v

                     STATE OF NEW YORK DIVISION OF HOUSING
                     AND COMMUNITY RENEWAL,

                                                  Respondent,

                     30 WEST 88 REALTY, LLC, and & SM 30W88,
                     LLC,

                                                  Respondents/Cross-Petitioners.
                     ----------------------------------------------------------------x
            and it is further,

             155861/2023 IN THE MATTER OF THE APPLICATION OF STEPHEN CHENG vs. STATE OF NEW             Page 4 of 5
             YORK DIVISION OF HOUSING AND COMMUNITY RENEWAL OFFICE OF RENT
             ADMINISTRATION
             Motion No. 001

                                                                     4 of 5
[* 4]
                                                                                                          INDEX NO. 155861/2023
  NYSCEF DOC. NO. 41                                                                               RECEIVED NYSCEF: 03/30/2024

                    ORDERED that, within 15 days of the entry of this decision and order, the petitioner shall

            serve a copy of this decision and order upon both the County Clerk and the Clerk of the General

            Clerk’s Office, which shall be effectuated 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 https://www.nycourts.gov/LegacyPDFS/ courts/

            1jd/supctmanh/Efil-protocol.pdf (nycourts.gov), and, to comply with those procedures, the

            petitioner shall (1) upload the decision and order to the NYSCEF system under document title

            “SERVICE ON SUPREME COURT CLERK (GENL CLERK) W/COPY OF ORDER” AND (2)

            separately file and upload the notice required by CPLR 8019(c) in a completed Form EF-22,

            along with a copy of the decision and order, under document title “NOTICE TO COUNTY

            CLERK CPLR 8019(C),” and the County Clerk and all appropriate court support offices shall

            thereupon amend the court records accordingly; and it is further,

                    ORDERED that the return dates of petition filed by Stephen Cheng, pending under

            MOTION SEQUENCE 002, and the petition filed by 30 West 88 Realty, LLC, and SM 30W88,

            LLC, now deemed to be a cross petition, are adjourned until April 11, 2024, at which time they

            shall be heard on papers only, without oral argument or personal appearance.

                    This constitutes the Decision and Order of the court.

                   3/29/2024                                                               $SIG$
                     DATE                                                          JOHN J. KELLEY, J.S.C.

             MOTION 001:                 CASE DISPOSED                 X   NON-FINAL DISPOSITION

                                                         □                                            □
                                     X   GRANTED              DENIED       GRANTED IN PART                OTHER

             APPLICATION:                SETTLE ORDER                      SUBMIT ORDER

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

             MOTION 003:                 CASE DISPOSED                 X   NON-FINAL DISPOSITION

                                                         □                                            □
                                         GRANTED              DENIED   X   GRANTED IN PART                OTHER

             APPLICATION:                SETTLE ORDER                      SUBMIT ORDER

             155861/2023 IN THE MATTER OF THE APPLICATION OF STEPHEN CHENG vs. STATE OF NEW               Page 5 of 5
             YORK DIVISION OF HOUSING AND COMMUNITY RENEWAL OFFICE OF RENT
             ADMINISTRATION
             Motion No. 001

                                                              5 of 5
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