FILED: KINGS COUNTY CLERK 09/15/ :15 PM

Transcription

1 SUPREME COURT OF THE STATE OF NEW YORK ::^:t:i i1ì:: x CITY OF NEW YORK, -against Plaintiff, 324 RALPH AVE LLC, OASIS CAPITAL CORP., THE LAND AND BUILDING THEREON KNOWN AS 324 RALPH AVENUE, BLOCK I714,LOT 20, COLINTY OF KINGS, STATE OF NEW YORK, JOHN DOE(S) l-10 and JANE DOE(S) 1-10, SUMMONS Index No.: Defendants TO THE ABOVE-NAMED DEFENDANTS: YOU ARE HEREBY SUMMONED to serve upon Plaintiff s attomey, at the address listed below, an answer to the verified complaint in this matter. If this summons was personally served upon you in the State of New York, the answer must be served within twenty (20) days after service of the summons, excluding the date of service. If the summons was not personally served upon you within the State of New York, the answer must be served within thirty (30) days after service of the summons is complete. If you do not serve an answer to the accompanying verified complaint within the time stated above, judgment may be entered against you, by default, for the relief demanded in the verified complaint. 1 of 15

2 This action is brought in the Supreme Court of the State of New York, in and for the County of Kings. The venue designated is the County of Kings because it is the county in which the real property is located. Dated: New York, New York September 15,20ll ZACHARY \ry. CARTER Corporation Counsel of the City of New York Attomey for Plaintiff 100 Church Street New York, New York Tel: (212) Fax (212) BY a J u, 4 Càilo s FemandglU galde Alvarez Assistant Corporation Counsel 2 2 of 15

3 SUPREME COURT OF THE STATE OF NEV/ YORK COI.INTY OF KINGS x CITY OF NEW YORK, Plaintiff, -against 324 RALPH AVE LLC, OASIS CAPITAL CORP., THE LAND AND BUILDING THEREON KNOWN AS 324 RALPH AVENUE, BLOCK I714,LOT 20, COUNTY OF KINGS, STATE OF NEV/ YORK, JOHN DOE(S) 1-10 and JANE DOE(S) 1-10, VERIFIED COMPLAINT Index No.: Defendants. Plaintiff CITY OF NEV/ YORK, by its attorney, ZACHARY W. CARTER, Corporation Counsel of the City of New York, as and for its complaint against Defendants, alleges as follows, upon information and belief: l. Plaintiff brings this action to enforce a relocation lienl pursuant to Sections (1)(a)(v) and (4) of the New York City Administrative Code ("Administrative Code") and Sections24 and 4l of the New York State Lien Law ("Lien Law"). 2. Plaintiff is a municipal corporation incorporated under the laws of the State of New York. 3. The New York City Department of Housing Preservation and Development ("HPD") is anew York City department created pursuant to Chapter 61, Section 1800 of the New York City Charter ("City Charter"). I Relocation liens placed against buildings by the Department of Housing Preservation and Development are "governed by the provisions of law regulating mechanics liens." Administrative Code $ (4). 3 of 15

4 4. HPD's Division of Property Management and Client Services provides relocation services to tenants displaced as a result of enforcement activities of various City agencies and deparlments. 5. Defendant THE LAND AND BUILDING THEREON KNOWN AS 324 RALPH AVENUE, BLOCK 1714,LOT 20, COUNTY OF KINGS, STATE OF NEV/ YORK, is the land and a residential two-family dwelling, located at 324 Ralph Avenue, Brooklyn, New York (the "subject premises"), more particularly bounded and described as follows: ALL that certain plot, piece or parcel of land, with the buildings and improvements thereon erected, situate, lying and being in the Borough of Brooklyn, County of Kings, City and State of New York, more parlicularly bounded and described as follows: BEGINNING at a point on the westerly side of Ralph Avenue where said Avenue intersects with the southerly side of Herkimer Street; RUNNING THENCE southerly along Ralph Avenue feet, to a point; THENCE westerly, and through a party wall, parallel with Herkimer Street, feet to a point; THENCE northerly, parallel with Ralph Avenue feet, to a point; THENCE easterly feet to the point or place of BEGINNING. 6. Defendant 324 RALPH AVE LLC, which is currently a domestic limited liability company organized and existing under the laws of the State of New York, is the fee owner of the subject premises after taking title by deed dated November 1,2073 and recorded on January 3,2014, and is named herein to foreclose and extinguish its ownership interest in the subject premises and/or to recover judgment against it. 2 4 of 15

5 7. Defbndant OASIS CAPITAL CORP., which is currently a domestic corporation organized and existing under the laws of the State of New York, is the former fee owner of the subject premises, and is named herein to recover judgment against it. Defendant OASIS CAPITAL CORP. transferred the subject premises to Defendant 324 RALPH AVE LLC by deed dated November 1,2013 and recorded on January 3, Defendants JOHN DOE(S) 1-10 and JANE DOE(S) l-10 are named as defendants to represent tenants, lessees, occupants, persons or corporations, and other lienors, if any, who may have or claim to have an interest in or lien against the subject premises, but whose interests are subordinate to the lien being foreclosed herein. Plaintiff sues them under fictitious names because Plaintiff does not know their true names. Plaintiff will submit the true names and interests of JOHN DOE(S) 1-10 and JANE DOE(S) 1-10 if and when Plaintiff learns of their true names and interests. 9. Upon information and belief,, each of the Defendants named in this action claims to have or may have some right, title, interest or lien in or to the subject premises or some part thereof, which right, title, interest or lien, if any, is subject and subordinate to the relocation lien of Plaintiff. 10. Upon information and belief, no persons other than the aforementioned Defendants, and the Environmental Control Board of the City of New York,' huu" or claim to have some interest in or lien upon the subject premises, which interest or lien, if any, is subsequent and subordinate, to the relocation lien of Plaintiff. t Tlle Environmental Control Board of the City of New York (the "Board") docketed six judgrnents against the subject premises for atotal amount of $1, afterthe filing of HPD's Notice of Lien. See infra fl 18. The Board is not named as a defendant herein as it is an agency of Plaintifl, the City of New York. J 5 of 15

6 FACTUAL ALLEGATIONS 11. On April 14,2010, while Defendant OASIS CAPITAL CORP. owned the subject premises, the New York City Department of Buildings ("DOB") issued Peremptory Vacate Order number * " (the "DOB Vacate Order") for the subject premises. The DOB Vacate Order directed that the subject premises be vacated for the following reasons: This order is issued because there is imminent danger to life or public safety or safety of the occupants or to property, in that cellar is occupied contrary to CIO # F, cellar has 15 bunkbeds occupied by 15 adults and no 2nd means of egress. 12. Also, on April 14, 2010, the New York City Fire Department ("FDNY") issued Vacate Order "YJ3224" (the "FDNY Vacate Order") for the first floor of the subject premises. The FDNY Vacate Order directed that the subject premises be vacated for the following reasons: "Laçk of proper egress [and] overcrowding of persons on lst floor fapartment]." The FDNY Vacate Order was duly docketed and filed on May 4,2010 with the Clerk of the Coufi, Supreme Court of the State of New York, Kings County. 13. Thereafter, HPD, pursuant to its powers and obligations under Administrative Code $ (1XaXv), provided and maintained relocation services for the tenants of the subject premises who were displaced due to the dangerous and unsafe conditions in the subject premises (the "displaced tenants"). 14. The first expenses for the relocation of the tenants from the subject premises were incurred on April 14, of 15

7 15. The dangerous and unsafe conditions in the subject premises and the necessity to provide relocation services to the displaced tenants arose as a result ofthe negligent and/or intentional acts of the Defendant OASIS CAPITAL CORP., who was the owner at the time of the issuance of the vacate orders, and/or of its failure to maintain the subject premises in accordance with the standards prescribed by the housing andlor health codes. 16. By deed dated November 1,2013 and recorded on January 3,2014, Defendant OASIS CAPITAL CORP. transferred ownership of the subject premises to Defendant 324 RALPH AVE LLC. 74, The last expenses for the relocation of the tenants were incurred on July 18. On June 24,2015, and within one year after HPD incurred the final expenses for the above-described relocation services, HPD caused to be filed in the Offrce of the Clerk of the County of Kings, the county where the subject premises is located, a verified "Notice under Section of the Administrative Code of the City of New York," dated June 22,2075 (the "Notice of Lien"). A copy of the Notice of Lien is annexed hereto as Exhibit "4." including, but not limited to: 19. In compliance with Lien Law $ 9, the Notice of Lien set forth information (a) The name and principal place of business of the lienor, Division of Code Enforcement of HPD; (b) The name, address and telephone number of the lienor's attorney; (c) The name of the owner of the real property against whose interest therein a lien is claimed and the interest of the owner in the properly insofar as the lienor has been able to identify it; 5 7 of 15

8 See Exhibit "A." (d) The relevant sections of the Administrative Code, pursuant to which the relocation services were authorized and required; (e) The address of the property from which the tenants/occupants were relocated and which is thereby subject to the lien; (Ð A breakdown of the relocation servrces performed and the expense incurred by the lienor for such services; and (g) The date of the first and last relocation expenses incuned by the lienor. 20. At the time of the filing of the notice of lien, there was-and still isjustly due, owing and unpaid by the owner of the subject premises to FIPD the sum of three hundred seventy-four thousand ninety-nine dollars and forty-six cents (5374,099.46) for the relocation expenses HPD incuned, with interest thereon from June 24,2015. See Exhibit"A." 21. In compliance with Lien Law $ I 1, on July 7,2015, HPD caused a copy of the Notice of Lien to be duly served upon the owner of the subject premises, Defendant 324 RALPH AVE LLC. HPD also served one of its members, Mayank Patel. The affidavits of service were duly filed with the Office of the Clerk of the County of Kings on or about July 29, 2075, as required by Lien Law $ 1 1. Copies of the affidavits of service of the Notice of Lien are collectively annexed hereto as Exhibit "B." 22. To date, the lien has not been paid, waived, cancelled, or discharged, and no other action or proceeding either at law or equity has been brought by or on behalf of Plaintiff to recover the its claim against any of the Defendants 6 8 of 15

9 FOR A FIRST SE OF'ACTION 23. Paragraphs I through 22 are incorporated by reference as ifset forth fully herein. 24. Pursuant to Administrative Code $ , HPD reasonably and lawfully expended three hundred seventy-four thousand ninety-nine dollars and forty-six cents (5314,099.46) in providing relocation services for the displaced tenants at the subject premises. 25. Administrative Code $ (1) provides that HPD is entitled to reimbursement from the owner of the subject premises of the expenses HPD incurred in providing relocation services for the displaced tenants at the subject premises "if the conditions giving rise to the need for such relocation arose as a result of the negligent or intentional acts of such owner, or as a result of his or her failure to maintain such dwelling in accordance with the standards prescribed by the housing or health code governing such dwelling." 26. Administrative Code $ (4) also provides that if HPD does not recover such relocation expenses from the owner of the subject premises, the expenses shall constitute a lien upon the subject premises, governed by the provisions of law regulating mechanics liens. 21. Pursuant to Administrative Code $ (4)(a), a lien for relocation services becomes valid and enforceable upon HPD's filing of a notice of lien, and such notice of lien must be fìled within one yeff of HPD incuning the expenses. For the purposes of this rule, "the latest date on which any expense covered by the lien was incurred is deemed to be the date on which all of the expenses contained in the notice of lien were incurred." 7 9 of 15

10 28. As the Notice of Lien was filed on June 24,2015, and the date of HPD's last relocation expense was July 14, 2074, the Notice of Lien was filed in accordance with Administrative Code $ (aXa). 29. Pursuant to Administrative Code $ (4)(b), a relocation lien is valid for ten (10) years from the time of the filing of the notice of lien, unless proceedings are taken to enforce or discharge the lien. 30. The Notice of Lien contains all of the information required by Lien Law $ HPD filed the Notice of Lien in accordance with the requirements set forth in Lien Law $ 10 and Administrative Code $ Pursuant to Lien Law $$ 24 and 41, Plaintiff may enforce a relocation lien on real property against the real properly and against any person liable for the debt upon which the lien is founded. 33. Defendant 324 RALPH AVE LLC has been the owner of the subject premises since November I,2073 and was the owner of the subject premises at the time that the Notice of Lien was filed in the Office of the Clerk of the County of Kings. 34. To date, the lien has not beeñ paid, waived, cancelled, or discharged, and no other action or proceeding either at law or equity has been brought by or on behalf of the Plaintiff to recover its claims against any of the Defendants. 35. As such, Plaintiff is entitled to foreclose on the subject premises to satisfy and enforce the relocation lien of 15

11 FOR A SBCOND IISE, OF'ACTION 36. Paragraphs I through 35 are incorporated by reference as if set forth fully herein. 37. Administrative Code $ (3) provides that HPD may bring an action for the amount of relocation expenses from the owner of the subject premises. 38. Moreover, Lien Law $ 54 provides, that in the event it is determined that a lienor does not have a valid lien, the lienor "may recover judgment therein for such sums as are due [to] him." 39. As such, in the event it is determined that the relocation lien is invalid, Plaintiff is entitled to judgment against Defendants OASIS CAPITAL CORP. and 324 RALPH AVE LLC for the amount of the relocation costs and expenses with interest thereon, together with the expenses of such sale and the costs of this action. WHEREFORE, Plaintiff demands judgment as follows: A. Adjudging and determining that, effective June 24, 2075, the Notice of Lien filed by Plaintiff imposed a valid lien on the subject premises for the sum of three hundred seventy-four thousand ninety-nine dollars and forty-six cents (5374,099.46) with interest thereon from June 24,2015, together with the costs and disbursements of this action; B. Adjudging and determining the equities of the parties to this action and the order and priority of the different liens; C. Adjudging and determining that Plaintiff has a lien on the subject premises prior to the interest therein or lien thereof of any of the Defendants; 9 11 of 15

12 D. Decreeing that the interest of Defendant 324 RALPH AVE LLC in the subject premises be sold according to law and that, from the proceeds of such sale, Plaintiff be paid the sum of three hundred seventy-four thousand ninety-nine dollars and forty-six cents (5314,099.46) with interest thereon from June 24, 2015, together with the costs and disbursements of this action, and that Plaintiff has judgment against Defendant 324 RALPH AVE LLC for any deficiency that may remain after such paymer t; E. Adjudging and determining that Defendants and all persons claiming under or through them, or either of them or any of them subsequent to the filing of the Notice of Pendency in this action in the Office of the Clerk of the County of Kings in which the subject premises is situated, and every person whose conveyance or encumbrance is subsequent or subsequently recorded, filed, or docketed, be forever barred and foreclosed of all right, claim, lien, and equity of redemption or other interest in the subject premises or any part thereof; F. Adjudging and determining that, in the event it is determined that Plaintiff does not have a valid and subsisting lien upon the subject premises, Plaintiff be awarded a judgment against Defendants OASIS CAPITAL CORP. and 324 RALPH AVE LLC in the sum of three hundred seventy-four thousand ninety-nine dollars and forty-six cents (5374,099.46), with interest thereon from June 24,2015 together with the costs and disbursements of this action; and of 15

13 E Awarding Plaintiff such other and further relief as this Court may deem just and proper. Dated New York, New York September 15,2017 ZACHARY W. CARTER Corporation Counsel of the City of New York Attorney for Plaintiff 100 Church Street New York, New York Tel: (212) Fax: (212) By: Carlos F galde Alvarez Assistant Corporation Counsel 1l 13 of 15

14 VERIFICATION AVE MARIA BRENNAN, an attorney admitted to practice before the Courts of the State of New York, hereby affirms the following to be true, under the penalties of perjury, pursuant to Section of the New York Civil Practice Law and Rules ("CPLR"). I have been duly designated as Acting Corporation Counsel of the City of New York and, as such, I am an officer of the City of New York, the Plaintiff in the within action. I have read the foregoing complaint and know the contents thereof; the same are true to my knowledge except as to those matters therein alleged upon information and belief,, and as to those matters I believe them to be true. The reason why this verification is not made by the City of New York is that it is a corporation. My belief as to all matters not stated upon my knowledge is based upon information obtained from various departments of the city government, from statements made to me by certain officers or agents of the City of New York, and from statements, affidavits or afíirmations of other persons. Dated: New York, New York September 15,2011 a AVE MARIA AN of 15

15 Index No SUPREME COURT OF THE STATE OF NEW YORK COLINTY OF KINGS CITY OF NEW YORK, -against- Plaintiff, 324 RALPH AVE LLC, OASIS CAPITAL CORP., THE LAND AND BUILDING THEREON KNOWN AS 324 RALPH AVENUE, BLOCK I7I4,LOT 20, COUNTY OF KINGS, STATE OF NEW YORK, JOHN DOE(S) l-10 and JANE DOE(S) 1-10, SUMMONS AND VERIFIED COMPLAINT Defendants ZACHARY W. CARTER Corporation Counsel of the City of New York Attorney for Plaintiff 100 Church Street, Room New York, N.Y Carlos Fernando Ugalde Alvarez A s s is t ant C orpor ation C ouns el Tel: (212) Fax: (212) Due and timely service is hereby admitted. New York, N.Y., 2017 Attorney for Esq 15 of 15