FILED: NEW YORK COUNTY CLERK 06/30/2015 03:47 PM INDEX NO. 155214/2015 NYSCEF DOC. NO. 11 RECEIVED NYSCEF: 06/30/2015 SUPREME COURT OF THE STATE OF NEW YORK COUNTY OF NEWYORK ~------~ -----------------------------------------------------x 179-94 ST LLC and YASHAR FOUNDATION INC., Plaintiff(s)/Petitioner(s), Index No. 155214/2015 - against - SANIA HASSAN, Defendant( s )/Respondent( s ). ------------------------------------------------------x NOTICE TO COUNTY CLERK AMENDMENT TO CAPTION _1_79_-_9_4_S_T_L_L_C., a [plaintiff/defendant or petitioner/respondent] in this case, hereby requests that the County Clerk amend the caption to conform to the caption in the amended pleading filed as Document Number 7. r l by adding the following parties as plaintiff(s)/petitioner(s): Corrt.Lil~j!XI by ti-oins the following parties as defendant(s)/respondent(s): \ S"'-"' I "- tl ~s s ~V\ (1t10 f- S-o rt\, t\ H ~ <; (-< h ) - l by adding the following parties as----------
The basis for this amendment is: IXI A stipulation of all parties who have appeared in this matter (copy attached); or [ ] An amendment as of right under CPLR 1003. Dated: June 30, 2015 _B_ri_a_n_D_._G_r_ai_fm_a_n (Name) _B_o_ra_h_,_G_o_ld_s_t_ei_n_,_et_a_I_. {Firm) _3_7_7_B_ro_a_d_w_a_y (Address) New York, NY 10013 _2_12_-_43_1_-1_3_00_x3_2_2 (Phone) ----------- (Fax) bgraifman@borahgoldstein.com (E-Mail) Attomey(s) for _P_l_a_in_t_iff_s THIS FORM (FILED AS A COVER PAGE), A COPY OF THE AMENDED CAPTION AS IT APPEARS ON THE NEWLY-FILED PLEADING, AND ANY OTHER ACCOMPANYING DOCUMENT MUST BEE-FILED AS ONE PDF. 7/10/13 2
SUPREME COURT OF THE STATE OF NEW YORK NEW YORK COUNTY -------------------------------------------------------------~----x 179-94 ST LLC and YASHAR FOUNDATION INC., - against - SONIA HASSAN, Plaintiffs, Index No. 155214/2015 STIPULATION TO AMEND/CORRECT CAPTION IAS Part 47 (Wright, J.) Defendant. -------------------------------------------------------------------x WHEREAS plaintiff filed this action with the name of the defendant as SONIA HASSAN rather than the correct name of SANIA HASSAN; The undersigned parties, being all the parties to this action, by their undersigned counsel, hereby stipulate that the caption of this action be amended to reflect the correct name of defendant as SANIA HASSAN, and that the new caption be as follows: SUPREME COURT OF THE STATE OF NEW YORK NEW YORK COUNTY ------------------------------------------------------------------->< 179-94 ST LLC and YASHAR FOUNDATION INC., - against - SANIA HASSAN, Plaintiffs, Defendant. ------------------------------------------------------------------->< Counsel for plaintiff may send to the Clerk of the Court notice of same.
This agreement may be executed in counterparts, and for purposes of this agreement facsimile/electronic signatures shall be deemed originals. Dated: New York, New York June 30, 2015 BORAH, GOLDSTEIN, ALTSCHULER, NAHINS & GOIDEL, P.C. By: DAVID B. ROSENBAUM, ESQ. BRIAN D. GRAIFMAN, ESQ. Attorneys for Plaintiffs 377 Broadway, 7th Floor New York, NY 10013 (212) 431-1300 x360, x322 MFY LEGAL SERVICES By~LANSULLIVAN, ESQ Attorneys for Defendant 299 Broadway New York, NY 10013 (212) 417-3713 (212) 417-3700 bsullivan@mfy.org 2
INDEX NO. 155214/2015 NYSCEF DOC. NO. 7 RECEIVED NYSCEF: 06/26/2015 SUPREME COURT OF THE STATE OF NEW YORK NEW YORK COUNTY -------------------------------------------------------------------x 179-94 ST LLC and YASHAR FOUNDATION INC., Plaintiffs, Index No. 155214/2015 AMENDED VERIFIED COMPLAINT - against - IAS Part 47 (Wright, J.) SANIA HASSAN, Defendant. -------------------------------------------------------------------x Plaintiff-owner 179-94 ST LLC and plaintiff net-lessee YASHAR FOUNDATION INC., by their attorneys, BORAH, GOLDSTEIN, ALTSCHULER, NAHINS & GOIDEL, P.C., as and for their complaint against defendant-occupant SANIA HASSAN (named in the complaint as Sonia Hassan), allege: NATURE OF THE ACTION 1. Plaintiff building owner and its net lessee seek to void defendantoccupant s unlawful sweetheart 15-year residential leasehold, which lease was put into place collusively without disclosure just weeks prior to the building sale to plaintiffowner. Defendant s lease was never recorded as required, and her occupancy violates a preexisting current Environmental Control Board (ECB) partial vacate order. The lease terms, including rent amount and an unlimited right to sublet and assign, violate public policy as an attempt to circumvent applicable SRO (single room occupancy) restrictions. Plaintiffs seek a declaration of rights, ejectment, and an award of use and occupancy. 1
THE PARTIES 2. Plaintiff 179-94 ST LLC ( Owner ) is a domestic limited liability company created and existing under the laws of the State of New York, having a principal place of business in Nassau County, New York, and owns the building and lot at 179 East 94 th Street, New York, New York, Block 1523, Lot 32 ( Building ). 3. Plaintiff Yashar Foundation Inc. ( Yashar ) is a New York not-for-profit corporation, having its principal office in Kings County, New York, and is the net lessee and landlord of the Building, pursuant to a net lease with Owner dated May 1, 2015. 4. Defendant Sania Hassan is the occupant of the Building Room # 203 (formerly known as Room 6), pursuant to a purported lease agreement dated September 14, 2014, for a term of approximately 15 years, commencing September 19, 2014 and ending August 19, 2029. BACKGROUND 5. The Building is a multiple dwelling, registered with the New York City Department of Buildings as a single-room occupancy (SRO) hotel, classified with the New York City Office of Code Enforcement (DHPD) as one apartment and 19 Class B rooms, its rent role registered with New York State Division of Housing and Community Renewal (DHCR) as rent stabilized or hotel/sro transient rooms. 6. By deed dated October 6, 2014, recorded on February 26, 2015, Owner became fee owner of the Building and real property on which it sits, purchased from non-party Gago Properties LLC ( Prior Owner ). 7. Prior to the sale, the Prior Owner s representatives, including its attorney, made representations to Owner s representatives specifying the Building s occupancy 2
status, but Hassan was not revealed to Owner and her apartment was not revealed as occupied. 8. Prior to the sale, Owner had obtained a Title Report for the Building. Neither Hassan s lease nor occupancy of her apartment was reported on the title report. 9. Upon taking possession of the Building, Owner discovered Hassan occupying Room # 203 ( Room #203 or the Premises ). 10. Hassan has since provided Owner with a copy of her purported lease, dated September 14, 2014, between her as tenant and the Prior Owner as landlord. The lease is for a 15-year term (but specified as September 19, 2014 to August 19, 2029), for Room #203 at a monthly rent of $600, with one month rent required as security. The lease provides tenant with a right to sublet, assign, or permit any other person to use the Premises. 11. Notarizing the landlord s and tenant s signatures on the lease is Brian M. Limmer, Esq., Notary Public. 12. Attorney Limmer acted as the Prior Owner s attorney in the sale of the Building to Owner. 13. Hassan has represented to Owner s principal that Limmer was her divorce attorney, but Hassan has since denied that he was. Upon information and belief, attorney Limmer has acted as Hassan s attorney or had independent dealings with Hassan prior to her being offered the 15-year sweetheart lease. 14. Hassan has provided Owner with copies of fronts of checks relating to the leasehold. The purported checks are dated September 16, 2014, payable to Robert 3
Gago (the Prior Owner s Managing Member), one in the amount of $600 for apartment renovations, and one in the amount of $3,000 for five months of rent. 15. Hassan s lease, exceeding a term of three years, is required to be recorded with the NYC Office of the City Register. 16. Hassan s lease has not been so filed or recorded. 17. Room #203 is one of the rooms specified in, and subject to, a Partial Vacate Order issued by the NYC Environmental Control Board as a result of an April 2, 2012 Notice of Violation against the Prior Owner, alleging among other things a failure to comply with maximum floor area requirements per occupant load, resulting in an order to Discontinue illegal occupancy (along with a monetary fine), which order is still open and applicable. 18. Due to the Partial Vacate Order, any occupancy of Room #203 is illegal. 19. Upon information and belief, Hassan s Room #203 is designated as Room 6 on the DHCR rent role filings, one of the 19 class B rooms. 20. Residential properties such as the Building are required to be registered with DHCR yearly. 21. The last year the Building registered its rent role filings was for the period effective April 1, 2007, when Room 6 was listed as vacant. 22. Immediately prior to that, the rent role filings identify Room 6 as Hotel/SRO transient (April 1, 2003-2006). Immediately prior to that it is listed as vacant (April 1, 2002), rent stabilized (April 1, 1997-2001), or Hotel/SRO transient (April 1, 1995-1996). 4
23. The most recent rent for Room 6 registered with DHCR is $78.85 per week as of April 1, 2001. 24. Upon information and belief, consistent with the lack of DHCR filings since the one effective April 1, 2007, Room 6, now known as Room #203, has been vacant since that last DHCR filing, until Hassan illegally became its occupant with the sweetheart 15-year lease just prior to the Building sale to Owner. FIRST CAUSE OF ACTION 25. Plaintiffs repeat and re-allege the allegations of this amended complaint as if set forth in full herein. 26. Hassan s lease is real property for purposes of Real Property Law (RPL) 290(1) and the leasehold a conveyance under RPL 290(3). 27. Owner purchased the Building and real property without knowledge or constructive knowledge of Hassan s purported leasehold. 28. Owner s purchase of the Building was in good faith. 29. Owner s purchase of the Building was for valuable consideration. 30. Owner s purchase of the Building was from the same Prior Owner as Hassan purportedly received her leasehold. 31. The deed conveying the Building and real property to Owner was first duly recorded without Hassan s leasehold being recorded. 32. In purchasing the Building, Plaintiff relied on the absence of Hassan s lease being recorded. 33. Hassan s claimed leasehold materially encumbers plaintiff s ownership rights in the Building. 5
34. Plaintiffs seek that Hassan s lease be declared void. 35. Upon information and belief, Hassan disputes Owner s position and refuses to surrender her room to Owner. 36. Plaintiffs have no adequate remedy at law. 37. Plaintiffs have engaged in no conduct that in equity would deny them equity. 38. Plaintiffs request a declaration in the form of a declaratory judgment declaring that Hassan s lease and leasehold are void with respect to Owner, pursuant to RPL 290-291. SECOND CAUSE OF ACTION 39. Plaintiffs repeat and re-allege the allegations of this amended complaint as if set forth in full herein. 40. Based on the above, and by operation of RPL 290-291, plaintiffs seek judgment awarding ejectment of Hassan from the Premises and a judgment of possession of the Premises to plaintiffs. THIRD CAUSE OF ACTION 41. Plaintiffs repeat and re-allege the allegations of this amended complaint as if set forth in full herein. 42. Due to the partial vacate order applicable to Room #203, Hassan s occupancy of the Premises is unlawful and illegal. 43. Plaintiffs request a declaration in the form of a declaratory judgment declaring that Hassan s lease and leasehold are void as violative of the ECB s Partial Vacate Order. 6
FOURTH CAUSE OF ACTION 44. Plaintiffs repeat and re-allege the allegations of this amended complaint as if set forth in full herein. 45. As a result of the partial vacate order applicable to the Premises, plaintiffs are entitled to judgment awarding ejectment of Hassan from the Premises and a judgment of possession of the Premises to plaintiffs. FIFTH CAUSE OF ACTION 46. Plaintiffs repeat and re-allege the allegations of this amended complaint as if set forth in full herein. 47. The Premises is a rent-stabilized and SRO restricted room. 48. The lease violates the rent stabilization and SRO-restricted use of the room in its temporal term, rent amount, and unlimited right to sublet, assign, and permit usage of the apartment, and effectively and unlawfully removes the Premises from the strictures of SRO rent-stabilized legislative scheme. 49. Hassan s rent amount exceeds what Rent Stabilization Law 26-511(c)(5-c)(1) allows for a vacancy lease with term of two years or more (increase limited to 20%). 50. Plaintiffs request a declaration in the form of a declaratory judgment declaring that Hassan s lease and leasehold are void as against public policy. SIXTH CAUSE OF ACTION 51. Plaintiffs repeat and re-allege the allegations of this amended complaint as if set forth in full herein. 7
52. Based on Hassan s leasehold violating the RSL, plaintiffs are entitled to judgment awarding ejectment of Hassan from the Premises and a judgment of possession of the Premises to plaintiffs. SEVENTH CAUSE OF ACTION 53. Plaintiffs repeat and re-allege the allegations of this amended complaint as if set forth in full herein. 54. Plaintiffs demand from defendant the reasonable value of use and occupancy of the Premises from October 6, 2014. WHEREFORE, Plaintiffs demand that final judgment be entered against defendant with the following relief in favor of plaintiffs against defendant: (a) on the first cause of action, declaratory judgment declaring that Hassan s lease and leasehold are void with respect to Owner, pursuant to RPL 290-291; (b) on the second cause of action, by operation of RPL 290-291, commanding ejectment of Hassan from the Premises and awarding a judgment of possession of the Premises to plaintiffs. (c) on the third cause of action, declaratory judgment declaring that Hassan s lease and leasehold are void as violative of and subject to the ECB partial vacate order directing the discontinuance of illegal occupancy, including within Room #203; (d) on the fourth cause of action, based on the vacate order, commanding ejectment of Hassan from the Premises and awarding a judgment of possession of the Premises to plaintiffs. 8
(e) on the fifth cause of action, declaratory judgment declaring that Hassan s lease and leasehold are void as against public policy. (f) on the sixth cause of action, based on the leasehold violating the RSL, commanding ejectment of Hassan from the Premises and awarding a judgment of possession of the Premises to plaintiffs. (g) on the seventh cause of action, a monetary award in an amount of the fair and reasonable value of use and occupancy of the Premises from October 6, 2014; and (h) granting any and all relief that the Court may deem just and proper, together with costs and disbursements of this action, and interest as allowed by law. Dated: New York, New York June 25, 2015 BORAH, GOLDSTEIN, ALTSCHULER, NAHINS & GOIDEL, P.C. /s By: DAVID B. ROSENBAUM, ESQ. BRIAN D. GRAIFMAN, ESQ. Attorneys for Plaintiffs 377 Broadway, 7 th Floor New York, NY 10013 (212) 431-1300 Ext. 360 9
"" -r. ''-~u L<l...UJ._ STATEOFNEVVYOJZ } U VERIFICATION } S.S.: co u NTY 0 F N.1-EE~\lf'rlV ~v<.po~r~k } Oce~ DAVID SCHWARTZ, being duly sworn, states that he is the Managing Member of plaintiff 179-94 ST LLC in this action and that the foregoing amended complaint is true to his own knowledge, except as to matters therein stated to be alleged on information and belief and as to those matters he believes them to be true. Sworn to before me this June~ 2015 CL~ Notary Public CHRISTINE MAGARELLI Notary Public State of New Jersey My commission Expires May 23. 2017