Summary
This New York Appellate Division decision affirms a lower court's grant of summary judgment in favor of tenants who sought to invalidate a lease agreement due to the landlord's failure to obtain a required municipal rental permit. The court held that leasing the premises without a valid permit violated the Village of Sands Point Code, rendering the contract illegal and unenforceable as a matter of public policy. Consequently, the court ordered the refund of rent and security deposits paid by the tenants, while remitting the matter for entry of a formal declaratory judgment.
Topics
Practice areas
Questions Presented
- Whether the lease agreement is illegal and unenforceable under Village Code §176-7.1 because it was executed without a required rental occupancy permit.
- Whether the summary judgment granted to the defendants was proper.
Holdings
- The lease agreement is illegal and unenforceable because it was entered into without a valid rental occupancy permit required by Village Code §176-7.1.
- Summary judgment was proper because the plaintiff failed to raise any triable issue of fact and the motion was not premature.
Key quotations
“The mere hope or speculation that evidence sufficient to defeat a motion for summary judgment may be uncovered during the discovery process is insufficient to deny the motion.” (132 AD3d 959)
Factual background
The defendants entered into a lease with the plaintiff on May 5, 2022 for premises in the Village of Sands Point, paying $25,000 rent, $25,000 security deposit, and $25,000 broker's fee. The premises were later found unsafe and no rental occupancy permit had been issued, violating Village Code §176-7.1. The defendants never occupied the premises and sought cancellation and refund; the plaintiff refused.
Procedural history
The plaintiff sued to recover damages for breach of a lease. The defendants moved for summary judgment on the complaint and on their counterclaims seeking a declaratory judgment that the lease was illegal and unenforceable. The Supreme Court, Nassau County, granted those motions. The plaintiff appealed.
Remand instructions
Remitted to the Supreme Court, Nassau County, for entry of a judgment declaring the lease agreement illegal and unenforceable.