Landlord Can Start Case Despite Tenant's Bankruptcy Filing

(Decision submitted by Joshua C. Price of the Manhattan law firm of Kucker Kraus & Bruh, LLP, attorneys for the landlord.) Facts: Landlord sued to evict rent-stabilized tenant to recover an apartment for owner occupancy. Tenant asked the court to dismiss the case. Landlord had properly delivered to tenant a notice of nonrenewal of tenant's lease during the 120-150-day window period before tenant's renewal lease expired. But tenant, an attorney, had filed for bankruptcy on the day before the 120-150-day window period began. Tenant didn't owe landlord any rent, so landlord didn't get notice of the bankruptcy filing. Also, landlord didn't get notice of the order of discharge that tenant received from the bankruptcy court at about the time the eviction case was started. Tenant claimed that his bankruptcy filing voided landlord's nonrenewal notice because, upon the filing of the bankruptcy petition, there was an automatic delay of any action to take property from debtor-tenant. Court: Tenant loses. This wasn't a case where landlord was trying to evict tenant for nonpayment of rent and a delay was required to protect tenant's assets. First, tenant's renewal lease wasn't property that had any monetary value to tenant. Second, tenant's right to a renewal lease wasn't automatic. Tenant must choose to renew, if offered. Third, the automatic bankruptcy delay didn't apply to the state's right to enforce rent stabilization regulations under its police power. The issue wasn't nonpayment of rent, but whether landlord was entitled to take back the apartment, based on his claim that he needed it for himself and his family. Fourth, landlord would be denied due process of law if the court found that his nonrenewal notice was void, since landlord got no notice of tenant's bankruptcy filing.

Evans v. Schneider: NYLJ 1/3/00, p. 27, col. 2 (Civ. Ct. NY; Hoffman, J)