Court Opinion

ID: 9952459
Source: CourtListenerOpinion
Date Created: 2024-03-19 20:08:59.722002+00
Date Added: 2024-06-11T14:39:59.050852
License: Public Domain

1133 Lexington Ave. Realty Corp. v Seiden Lexington
                     Holdings, LLC
               2024 NY Slip Op 30837(U)
                     March 15, 2024
           Supreme Court, New York County
        Docket Number: Index No. 160933/2022
                  Judge: Lyle E. Frank
Cases posted with a "30000" identifier, i.e., 2013 NY Slip
 Op 30001(U), are republished from various New York
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  York State Unified Court System's eCourts Service.
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                       publication.
                                                                                                                         INDEX NO. 160933/2022
  NYSCEF DOC. NO. 99                                                                                               RECEIVED NYSCEF: 03/15/2024

                                   SUPREME COURT OF THE STATE OF NEW YORK
                                             NEW YORK COUNTY
            PRESENT:             HON. LYLE E. FRANK                                                  PART                             11M
                                                                                       Justice
            ----------------------------------------------------------------- ----------------X      INDEX NO.          160933/2022
             1133 LEXINGTON AVE. REALTY CORP.,
                                                                                                     MOTION DATE         09/19/2023
                                                         Plaintiff,
                                                                                                     MOTION SEQ. NO.         003
                                                 - V -

             SEIDEN LEXINGTON HOLDINGS, LLC,OFFICE OF THE
             CITY REGISTER OF THE CITY OF NEW YORK, 1131                                               DECISION + ORDER ON
             PROPERTY OWNER LLC, 150-152 EAST 79, LLC,                                                       MOTION

                                                         Defendant.
            ------------------------------------------------------------------- --------------X

            The following e-filed documents, listed by NYSCEF document number (Motion 003) 57, 58, 59, 60, 61,
            62, 63, 64, 65,66, 67,68,69, 70, 71, 72, 73, 74, 75, 76, 77, 78, 79, 80, 81, 82,83,84, 85, 86,87,88, 89,
            90, 91, 92, 93, 94, 95, 96, 97, 98
            were read on this motion to/for                                                       JUDGMENT-SUMMARY

                      Upon the foregoing documents, plaintiffs motion for summary judgment is granted.

            Background

                      This case involves a dispute between the property owners of two adjacent lots in

            Manhattan. Plaintiff 1133 Lexington Ave. Realty Corp., ("plaintiff') is the owner of the property

            located at 1133 Lexington Avenue, New York, New York ("Lot 153"). Intervenor Defendant, W

            79th Street Owner, LLC ("intervenor defendant") is the owner of the property located at 1131

            Lexington Avenue, New York, New York ("Lot 154").

                      Plaintiff commenced this action to cancel two recorded documents, one which created a

            single zoning lot consisting of Lots 153 and 154, and the Development Agreement which entitled

            the Lot 154 owner to utilize certain unused development rights. As none of the named defendants

            currently own Lot 154, the current owner, W 79th Street moved to intervene. This Court granted

             160933/2022 1133 LEXINGTON AVE. REALTY CORP. vs. SEIDEN LEXINGTON HOLDINGS, LLC                             Page 1 of4
             ET AL
             Motion No. 003

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                                                                                                 INDEX NO. 160933/2022
  NYSCEF DOC. NO. 99                                                                       RECEIVED NYSCEF: 03/15/2024

            W 79th Street's motion to intervene. Plaintiff now moves for summary judgment. Intervenor

            defendant opposes.

                   In 2016, Plaintiff and Seiden Lexington Holdings, LKLC ("Seiden") entered into a

            contract whereby Seiden, agreed to purchase Lot 153 from plaintiff. According to plaintiff, in

            anticipation with the potential sale, plaintiff and defendant Seiden executed a Declaration of

            Zoning Lot Restrictions and a Zoning Lot and Development Agreement and Temporary

            Construction Licenses. The Zoning Declaration was recorded against the Subject Property with

            the Office of the City Register of the City of New York, County of New York. The documents

            were executed by Seiden, on behalf of Lot 154. However, at the time the documents were

            executed, third party Ana Development was the owner of Lot 154. According to plaintiff, Ana

            Development has contracted to sell Lot 154 to Seiden Lexington Holdings, but the zoning

            documents were executed prior to the sale.

                   Plaintiff therefore seeks an Order declaring the Memorandum of Sale, Zoning

            Declaration and Development Agreement and Licenses to no longer be in full force and effect

            and directing the Office of the City Register of the City of New York to cancel and discharge

            such instruments as encumbrances to the Subject Property.

            Discussion

                   Plaintiff argues that the zoning documents should be cancelled as Ana Development, as

            owner of Lot 154, and thus a necessary "party in interest," did not execute the documents.

            Intervenor defendant does not dispute that Ana Development was a party in interest and didn't

            sign the documents; however, intervenor argues that the language "all parties in interest (as

            defined in the [Zoning] Resolution) to the Property as shown on the Zoning Lot Certification of

             160933/2022 1133 LEXINGTON AVE. REALTY CORP. vs. SEIDEN LEXINGTON HOLDINGS, LLC     Page 2 of 4
             ET AL
             Motion No. 003

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                                                                                                   INDEX NO. 160933/2022
  NYSCEF DOC. NO. 99                                                                       RECEIVED NYSCEF: 03/15/2024

            Choice Abstract ... have joined in this Declaration or have waived their right to do so,"

            establishes Ana Development waived its rights.

                   Plaintiff contends that as Ana Development was not a party to the documents, nor is Ana

            Development identified or named, there can be no waiver of its right. The Court agrees. Ana

            Development was not a party to the zoning documents. That the documents state all parties have

            waived their right is of no consequence when the executing party had no ability to waive such

            parties' rights. Moreover, Section 12-10(d) of the New York City Zoning Resolution requires

            "[e]ach declaration [to] be executed by each party in interest .... " That did not occur here. As

            such, the zoning documents are void.

                   The Court does not find intervenor defendant's argument that regardless, the documents

            should remain in effect under a theory of equitable estoppel availing. It is well established that in

            order to prevail on the theory of equitable estoppel, the party seeking estoppel must demonstrate

            a lack of knowledge of the true facts; reliance upon the conduct of the party estopped; and a

            prejudicial change in position. Burrowes v. Combs, 25 A.D.3d 370 [1st Dept 2006]. Here,

            intervenor defendant fails to establish reliance upon the conduct of the party estopped. Here, it

            was Seiden, not plaintiff, who entered into the zoning agreements and allegedly made a promise

            to which the intervenor defendant relies on. That Seiden represented himself as the owner of the

            property in the zoning documents before the sale had been completed, cannot be imputed to

            plaintiff. Moreover, as plaintiff argues, this information was discoverable to intervenor defendant

            had they engaged in diligent research regarding title of the property.

                   The Court has reviewed the remaining contentions of the intervenor defendant and finds

            them unavailing.

                   Accordingly, it is hereby

             160933/2022 1133 LEXINGTON AVE. REALTY CORP. vs. SEIDEN LEXINGTON HOLDINGS, LLC       Page 3 of 4
             ET AL
             Motion No. 003

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                                                                                                      INDEX NO. 160933 / 2022
  NYSCEF DOC. NO. 99                                                                           RECEIVED NYSCEF: 03 / 15 / 2024

                    ADJUDGED that plaintiffs motion for summary judgment is granted; and it is further

                    ORDERED and DECLARED that the recorded April 19, 2016, Memorandum of Sale,

            Zoning Declaration and Zoning Lot and Development Agreement to be null, void and

            unenforceable, and directing the City Register of the City of New York to cancel such

            instruments of record; and it is further

                    ORDERED that the portion of this Court's July 12, 2023 Decision and Order staying

            Plaintiffs motion for default judgment against the non-appearing parties, to wit: SEIDEN

            LEXINGTON HOLDINGS, LLC, OFFICE OF THE CITY REGISTER OF THE CITY OF

            NEW YORK, 1131 PROPERTY OWNER LLC,150- 152 EAST 79, LLC, is vacated and

            plaintiff is awarded judgment by default against those non-appearing parties for the same relief

            sought and granted herein.

                     3/15/2024
                       DATE                                                         LYLE E. FRANK, J.S.C.

                                                                       ~
             CHECK ONE:                   CASE DISPOSED                    NON-FINAL DISPOSITION

                                          GRANTED         □ DENIED         GRANTED IN PART          □ OTHER
             APPLICATION :                SETTLE ORDER                     SUBMIT ORDER

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

             160933/2022 1133 LEXINGTON AVE. REALTY CORP. vs. SEIDEN LEXINGTON HOLDINGS, LLC          Page 4 of 4
             ET AL
             Motion No. 003

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