throbber
FILED: NEW YORK COUNTY CLERK 04/09/2017 10:13 PM
`FILED: NEW YORK COUNTY CLERK 04m2017 10:13 P
`
`NYSCEF DOC. NO.
`1
`NYSCEF DOC. NO. 1
`
`651903/2017
`INDEX NO. 651903/2017
`INDEX NO'
`
`
`
`
`
`R«C«IV«D NYSCEF:
`04/09/2017
`RECEIVED NYSCEF: 04/09/2017
`
`
`
`SUPREME COURT OF THE STATE OF NEW YORK
`COUNTY OF NEW YORK
`
`MAXINE HAMILTON, CLIFFORD LABEACH and
`ERROL LABEACH
`
`Filed:
`Index NO.
`
`Plaintiffs,
`
`-against-
`
`New York County as the
`place of trial
`501 WEST 156TH STREET HOUSING DEVELOPMENT
`
`Plaintiff designates
`
`FUND CORPORATION,
`
`Defendant.
`
`The basis of venue is
`
`where the Plaintiff
`
`has its principal
`
`place of business
`
`SUMMONS
`
`TO THE ABOVE NAMED DEFENDANT:
`
`YOU
`
`ARE
`
`HEREBY
`
`SUMMONED
`
`TO
`
`answer
`
`the Verified
`
`copy of your
`a
`to serve
`in this action and
`Complaint
`Verified Answer or,
`if the Verified Complaint is not served
`
`to serve a notice of appearance, on the
`with this Summons,
`Plaintiff's attorneys within 20 days after the service of
`this Summons, exclusive of the day of service (or within 30
`
`is not
`days after the service is complete if this Summons
`personally delivered to you within the State of New York);
`and in case of your failure to appear or answer,
`judgment
`will
`be
`taken against
`you
`by default
`for
`the
`relief
`demanded in the Verified Complaint.
`
`Dated:
`
`New York, New York
`
`April 9, 2017
`
`
`
`:NR’..£I
`
`STEVEN R. SUTTO
`
`Attorney for Plaintiff
`630 Third Avenue,
`15th Floor
`
`New York, New York 10017
`
`(212) 696—0090
`
`l of 13
`1 of 13
`
`

`

`FILED: NEW YORK COUNTY CLERK 04/09/2017 10:13 PM
`FILED: NEW YORK COUNTY CLERK 04m2017 10:13 P
`
`NYSCEF DOC. NO.
`1
`NYSCEF DOC. NO. 1
`
`IND
`EX NO .
`651903/2017
`INDEX NO. 651903/2017
`
` «IIV-4
` 3F:
`
`.D \IYSCI
`04/09/2017
`RECEIVED NYSCEF: 04/09/2017
`
`Defendant’s Address:
`
`501 WEST 156TH STREET HOUSING DEVELOPMENT
`FUND CORPORATION
`
`501 West 156th Street
`
`Apt. 21
`New York, N.Y. 10032
`
`2 of 13
`2 of 13
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`

`

`FILED: NEW YORK COUNTY CLERK 04/09/2017 10:13 PM
`FILED: NEW YORK COUNTY CLERK 04332017 10:13 P
`
`NYSCI
`3F DOC. NO.
`1
`NYSCEF DOC. NO. 1
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`INDEX NO. 651903/2017
`INDEX NO- 651903/2017
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`
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`
`
`R«C«IV«D NYSCEF: 04/09/2017
`RECEIVED NYSCEF: 04/09/2017
`
`
`
`SUPREME COURT OF THE STATE OF NEW YORK
`COUNTY OF NEW YORK
`
`MAXINE HAMILTON, CLIFFORD LABEACH and
`
`Index No.
`
`ERROL LABEACH,
`
`Plaintiffs,
`
`VERIFIED COMPLAINT
`
`-against-
`
`501 WEST 156TH STREET HOUSING DEVELOPMENT
`
`FUND CORPORATION,
`
`Defendant.
`
`Plaintiff, MAXINE HAMILTON, CLIFFORD LABEACH AND ERROL
`
`LABEACH, by their attorney, Steven R. Sutton,
`
`as
`
`and for her
`
`Verified Complaint
`
`herein,
`
`against Defendant,
`
`alleges
`
`as
`
`follows:
`
`NATURE OF ACTION AND VENUE
`
`1. That at all times hereinafter mentioned, Plaintiff
`
`MAXINE HAMILTON ("MAXINE H.") was and still is an individual
`
`residing in the County of Columbia, State of New York.
`
`2. That at all times hereinafter mentioned, Plaintiffs
`
`CLIFFORD LABEACH ("CLIFFORD L.")
`
`and ERROL LABEACH (”ERROL
`
`L.") were
`
`and still are individuals, both residing in the
`
`County of Columbia, State of New York.
`
`3.
`
`Upon
`
`information and belief,
`
`at all
`
`relevant
`
`times, defendant 501 WEST 156TH STREET HOUSING DEVELOPMENT FUND
`
`3 of 13
`3 of 13
`
`

`

`FILED: NEW YORK COUNTY CLERK 04/09/2017 10:13 PM
`FILED: NEW YORK COUNTY CLERK 04m2017 10:13 P
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`NYSCEF DOC. NO.
`1
`NYSCEF DOC. NO. 1
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`INDEX NO. 651903/2017
`INDEX NO- 651903/2017
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`R«C«IV«D NYSCEF: 04/09/2017
`RECEIVED NYSCEF: 04/09/2017
`
`
`
`CORPORATION (“156TH STREET" or "Landlord"), was and still is a
`
`New York Cooperative corporation,
`
`and is the present owner and
`
`landlord of the Building (hereinafter defined).
`
`3.
`
`Plaintiff, MAXINE H.,
`
`as
`
`one
`
`of
`
`the
`
`three
`
`individual signatories as Tenant under the subject Lease , along
`
`with CLIFFORD L.
`
`and ERROL L.
`
`(collectively,
`
`“Tenant"),
`
`and
`
`Defendant 156TH STREET, as Landlord, entered into a lease dated
`
`September, 2015 (the "Lease"),
`
`for certain premises described as
`
`Restaurant Space, Ground Floor Store #3 (the "Premises"),
`
`in the
`
`building known as 1942A Amsterdam Avenue (the “Building"), for a
`
`seven-year term commencing September 2015 and ending August 31,
`
`2022.
`
`4.
`
`Based upon,
`
`and reliance on,
`
`the Lease, Tenant
`
`proceeded to make necessary improvements
`
`to the Premises at
`
`significant cost to make it possible to operate the Premises for
`
`the intended use as a restaurant.
`
`5.
`
`Tenant
`
`took possession of the Premises on or about
`
`January 15, 2016; and by lease provision, Tenant was given three
`
`months free rent, amended to January 15 through April 15, 2016,
`
`to do necessary repairs to the Premises.
`
`6. Tenants, who are not sophisticated or well—educated
`
`people, were not represented by counsel
`
`in connection with the
`
`40f13
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`FILED: NEW YORK COUNTY CLERK 04/09/2017 10:13 PM
`FILED: NEW YORK COUNTY CLERK 04332017 10:13 P
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`NYSCEF DOC. NO.
`1
`NYSCEF DOC. NO. 1
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`INDEX NO. 651903/2017
`INDEX NO- 651903/2017
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`R«C«IV«D NYSCEF: 04/09/2017
`RECEIVED NYSCEF: 04/09/2017
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`
`
`Lease, while Landlord was represented by counsel who drafted the
`
`Lease.
`
`7. The Lease is silent as
`
`to the responsibility of
`
`Landlord to make structural repairs to the Building and Building
`
`systems and accessories.
`
`8. By agreement with the previous Board of Directors
`
`(the "Old Board") of
`
`the Cooperative Corporation, by reason of
`
`the extensive nature of
`
`the necessary repairs to the Premises,
`
`the rent
`
`free period was extended an additional
`
`three months,
`
`until July 15, 2016.
`
`9.
`
`Thereafter, when
`
`it became apparent
`
`that main
`
`systems of the Premises needed repair, an additional four months
`
`free rent was granted,
`
`to allow the Tenant
`
`to make unforeseen
`
`repairs to systems in the Premises, up to and including November
`
`15, 2016.
`
`10. Nevertheless,
`
`by virtue
`
`of
`
`a
`
`change
`
`in the
`
`composition of
`
`the Board of Directors
`
`(hereafter,
`
`the
`
`“New
`
`Board") it appears the New Board was unaware of, and has failed
`
`to recognize the prior agreements of the Old Board.
`
`11. Aside from the necessary repairs to the Premises
`
`that Plaintiff/Tenant has made to the Premises, major structural
`
`defects related to the Building have been. discovered, namely,
`
`(a) major
`
`leaks from its “Sub—Roof"
`
`(the ”Sub-Roof"), which is
`
`50f 13
`5 of 13
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`FILED: NEW YORK COUNTY CLERK 04/09/2017 10:13 PM
`FILED: NEW YORK COUNTY CLERK 04332017 10:13 P
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`NYSCEF DOC. NO.
`1
`NYSCEF DOC. NO. 1
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`INDEX NO. 651903/2017
`INDEX NO- 651903/2017
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`R«C«IV«D VYSCEF: 04/09/2017
`RECEIVED NYSCEF: 04/09/2017
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`above
`
`the
`
`second floor of
`
`the Building, directly into the
`
`kitchen of the Premises, and (b)
`
`the sewage line for the entire
`
`Building,
`
`leading into the
`
`basement
`
`of
`
`the Premises
`
`(the
`
`"Damaged
`
`Sewer Line"),
`
`is
`
`cracked
`
`and
`
`covered
`
`over with
`
`electrical tape.
`
`12.
`
`The existence of
`
`the leaking from the Sub—Roof
`
`directly into the kitchen of the Premises, and the Damaged Sewer
`
`Line make it impossible for Plaintiff to open or operate its
`
`contemplated restaurant.
`
`13. Plaintiff has notified Landlord of
`
`the condition
`
`of the Sub—Roof and the condition of the Damaged Sewer Line, but
`
`Landlord has
`
`failed and refused to accept
`
`responsibility to
`
`repair these conditions, or to take any actions to repair same.
`
`14. Under
`
`these circumstances, it is evident
`
`that
`
`the
`
`Landlord has not delivered usable possession. of
`
`the Premises,
`
`and the provisions of paragraph “3" of the Lease are triggered,
`
`namely, delaying payment of
`
`rent
`
`up
`
`to the
`
`time
`
`that
`
`the
`
`structural repairs noted above have been completed.
`
`15. Nevertheless, Defendant has
`
`initiated a
`
`summary
`
`proceeding in the Civil Court, New York County, under Index No.
`
`054243/17
`
`(the
`
`“Summary Proceeding"),
`
`for
`
`the
`
`eviction of
`
`Plaintiff
`
`for alleged non-payment of
`
`rent, which claim also
`
`violates the "rent-free period" agreed upon by the Old Board.
`
`60f 13
`6 of 13
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`FILED: NEW YORK COUNTY CLERK 04/09/2017 10:13 PM
`FILED: NEW YORK COUNTY CLERK 04m2017 10:13 P
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`NYSCEF DOC. NO.
`1
`NYSCEF DOC. NO. 1
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`INDEX NO. 651903/2017
`INDEX NO- 651903/2017
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`R«C«IV«D VYSCEF: 04/09/2017
`RECEIVED NYSCEF: 04/09/2017
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`
`
`16. While paragraph “14" of
`
`the Lease provides that
`
`the Premises are leased "as is" and and that no representations
`
`are made to the physical condition of
`
`the Building, by failing
`
`to accept responsibility for
`
`the major structural
`
`repairs set
`
`forth above, which prevent Plaintiff’s opening for business or
`
`to operate
`
`a viable restaurant, Defendant has vitiated the
`
`benefit of Plaintiff’s bargain.
`
`17.
`
`By
`
`failing and refusing to make
`
`such repairs,
`
`Landlord has violated the covenant of quiet enjoyment of
`
`the
`
`Premises and there is absolutely no consideration being given
`
`for the payment of rent by the tenant under the lease.
`
`18. Likewise,
`
`by failing and refusing to make
`
`such
`
`repairs, Landlord has violated the covenant of good faith and
`
`fair dealing that is implied into every contract in this State.
`
`19. Similarly, while paragraph "17"
`
`of
`
`the Lease
`
`allows
`
`landlord an
`
`easement
`
`for
`
`its pipes
`
`"to the
`
`extent
`
`necessary to accommodate the requirements of other
`
`tenants in
`
`the Building”,
`
`any such easement would not extend to allowing
`
`the Landlord to continue to keep it cracked sewage line in the
`
`basement of the Premises intended to be used as a restaurant.
`
`20.
`
`As
`
`a result, Defendant has violated paragraph
`
`"17" of the Lease by failing properly to maintain and repair its
`
`Defective Sewer Line.
`
`70f13
`7 of 13
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`

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`FILED: NEW YORK COUNTY CLERK 04/09/2017 10:13 PM
`FILED: NEW YORK COUNTY CLERK 04m2017 10:13 P
`
`NYSCEF DOC. NO.
`1
`NYSCEF DOC. NO. 1
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`INDEX NO. 651903/2017
`INDEX NO- 651903/2017
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`
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`R«C«IV«D VYSCEF: 04/09/2017
`RECEIVED NYSCEF: 04/09/2017
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`
`
`21.
`
`Plaintiff has
`
`invested substantial
`
`time, money
`
`and energy into improving the Demised Premises for purposes of
`
`its restaurant business and should not be required to vacate or
`
`quit the Demised Premises or lose the benefit of their bargain.
`
`22. Accordingly, Plaintiff/Tenant seeks a declaration
`
`that Landlord
`
`is
`
`fully responsible
`
`to repair
`
`these major
`
`structural defects relating to its Building,
`
`and that Tenant’s
`
`obligation to pay rent under
`
`the Lease
`
`should not
`
`commence
`
`unless and until the necessary repairs are made.
`
`AS AND FOR A FIRST CAUSE OF ACTION
`
`[Declaratory Judgment]
`
`23.
`
`Plaintiff repeats the allegations in Paragraphs
`
`"1" through "22" above with the same force as if fully set forth
`
`herein at length.
`
`24.
`
`A controversy has arisen and now exists between
`
`Plaintiff and Defendant concerning their respective rights and
`
`remedies under the Lease.
`
`25. Landlord has failed and refused to make necessary
`
`structural repairs to its Building in the way of the leaky Sub—
`
`Roof and the Damaged Sewer Line, which failure deprives Tenant
`
`of
`
`the benefit of
`
`its bargain,
`
`and the ability to operate its
`
`restaurant, which is the contemplated use of the Premises.
`
`80f 13
`8 of 13
`
`

`

`FILED: NEW YORK COUNTY CLERK 04/09/2017 10:13 PM
`FILED: NEW YORK COUNTY CLERK 04m2017 10:13 P
`
`NYSCEF DOC. NO.
`1
`NYSCEF DOC. NO. 1
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`INDEX NO. 651903/2017
`INDEX NO- 651903/2017
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`
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`
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`R«C«IV«D VYSCEF: 04/09/2017
`RECEIVED NYSCEF: 04/09/2017
`
`26.
`
`By reason of the foregoing, disputes have arisen
`
`between Plaintiff and Defendant as to Landlord’s obligation to
`
`make the structural repairs required to its Building, namely the
`
`Sub—Roof and the Damaged Sewer Line, and that Plaintiff should
`
`not be
`
`required to commence payment of
`
`rent under
`
`the Lease
`
`pending completion of such repairs.
`
`27.
`
`In addition, Defendant
`
`should be estopped from
`
`denying or disclaiming the Rent Free Periods granted by the Old
`
`Board and relied upon by Plaintiff.
`
`28.
`
`Plaintiff desires a
`
`judicial determination and
`
`declaration of Plaintiff’s and Defendant’s respective rights and
`
`obligations under the Lease.
`
`29.
`
`A
`
`judicial
`
`declaration
`
`is
`
`necessary
`
`and
`
`appropriate at this time in order to resolve the unsettled state
`
`of affairs
`
`between
`
`the parties
`
`and
`
`to protect Plaintiff’s
`
`valuable
`
`leasehold
`
`interest
`
`in
`
`the
`
`Premises
`
`from being
`
`wrongfully terminated.
`
`30.
`
`As
`
`a consequence of
`
`such disputes, Plaintiff
`
`requires an injunction restraining Defendant from continuing the
`
`Summary Proceeding pending this Court's determination of
`
`the
`
`parties' respective rights and obligations under the Lease.
`
`31. Accordingly, Defendant
`
`should
`
`be
`
`permanently
`
`enjoined from taking any further steps to terminate the Lease.
`
`90f 13
`9 of 13
`
`

`

`FILED: NEW YORK COUNTY CLERK 04/09/2017 10:13 PM
`FILED: NEW YORK COUNTY CLERK 04m2017 10:13 P
`
`NYSCEF DOC. NO.
`1
`NYSCEF DOC. NO. 1
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`INDEX NO. 651903/2017
`INDEX NO- 651903/2017
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`
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`R«C«IV«D VYSCEF: 04/09/2017
`RECEIVED NYSCEF: 04/09/2017
`
`32. Plaintiff has no adequate remedy at law.
`
`AS AND FOR A SECOND CAUSE OF ACTION
`
`[Injunction]
`
`33.
`
`Plaintiff repeats the allegations in Paragraphs
`
`"1" through "32" above with the same force as if fully set forth
`
`herein at length.
`
`34. Defendant
`
`is
`
`seeking to terminate Plaintiff’s
`
`Lease prior
`
`to its expiration based on
`
`the wholly improper
`
`position that Plaintiff must pay rent
`
`in the face of major
`
`structural defects
`
`in the Building,
`
`including leaks
`
`from the
`
`Sub—Roof
`
`into Plaintiff’s kitchen, and the Defective Sewer Line,
`
`both
`
`preventing Plaintiff
`
`from opening
`
`its
`
`contemplated
`
`restaurant business.
`
`35.
`
`In addition, Defendant’s New Board has failed and
`
`refused to honor
`
`agreements by the Old Board for
`
`rent
`
`free
`
`periods extending up to and including November 15, 2016.
`
`36.
`
`A
`
`permanent
`
`injunction
`
`is
`
`necessary
`
`and
`
`appropriate at this time in order to resolve the unsettled state
`
`of affairs
`
`between
`
`the parties
`
`and
`
`to protect Plaintiff’s
`
`valuable
`
`leasehold
`
`interest
`
`in
`
`the
`
`Premises
`
`from being
`
`wrongfully terminated.
`
`37.
`
`Accordingly, Defendant
`
`should be permanently
`
`enjoined from taking any further steps to prosecute the Summary
`
`Proceeding or terminate the Lease by such proceeding
`
`8
`
`10 of 13
`10 of 13
`
`

`

`FILED: NEW YORK COUNTY CLERK 04/09/2017 10:13 PM
`FILED: NEW YORK COUNTY CLERK 04m2017 10:13 P
`
`NYSCEF DOC. NO.
`1
`NYSCEF DOC. NO. 1
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`INDEX NO. 651903/2017
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`INDEX NO- 651903/2017
` VYSCEF: 04/09/2017
`
`
`
`
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`R*.C*.IV*.D
`RECEIVED NYSCEF: 04/09/2017
`
`38. Plaintiff has no adequate remedy at law.
`
`AS AND FOR A THIRD CAUSE OF ACTION
`
`[Damages]
`
`39.
`
`Plaintiff repeats the allegations in Paragraphs
`
`"1" through "38" above with the same force as if fully set forth
`
`herein at length.
`
`40.
`
`By reason of Defendant’s improper actions as set
`
`forth above, Plaintiff has been,
`
`and continues to be, deprived
`
`of profits, past and continuing,
`
`that would have accrued,
`
`and
`
`would
`
`continue
`
`to accrue,
`
`by
`
`the operation of Plaintiff’s
`
`restaurant business as contemplated.
`
`41.
`
`By reason of the foregoing, Plaintiff is
`
`damages
`
`in at
`
`least
`
`the
`
`sum of One Million, Five
`
`entitled
`
`Hundred
`
`Thousand Dollars ($1,500,000.00).
`
`WHEREFORE,
`
`Plaintiff
`
`demands
`
`judgment
`
`against
`
`Defendants, as follows:
`
`(a) Declaring, adjudging and decreeing the rights of
`
`the parties as follows:
`
`(i)
`
`that it is Defendant’s obligation to repair
`
`the
`
`Sub—Roof
`
`from leaking
`
`into Plaintiff’s
`
`contemplated
`
`restaurant and to repair the Defective Sewer Line; and
`
`11 of 13
`11 of 13
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`FILED: NEW YORK COUNTY CLERK 04/09/2017 10:13 PM
`FILED: NEW YORK COUNTY CLERK 04m2017 10:13 P
`NYSCI
`3F DOC. NO.
`1
`NYSCEF DOC. NO. 1
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`INDEX NO. 651903/2017
`INDEX NO- 651903/2017
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`
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`R«C«IV«D NYSCEF: 04/09/2017
`RECEIVED NYSCEF: 04/09/2017
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`
`
`(ii)
`
`that Plaintiff’s obligation to pay
`
`rent
`
`under
`
`the Lease shall not commence up until
`
`the completion of
`
`such necessary structural repairs;
`
`(b) Permanently enjoining and restraining Defendant,
`
`its officers,
`
`representatives,
`
`agents,
`
`employees,
`
`attorneys,
`
`successors,
`
`and assigns,
`
`and each of
`
`them,
`
`from taking any
`
`further action to terminate the Lease by continuing to prosecute
`
`the pending Summary Proceeding in the Civil Court, New York
`
`County;
`
`(c) on the Third Cause of Action, awarding damages in
`
`Plaintiff’s favor and against Defendant
`
`in at
`
`least
`
`the sum of
`
`One Million, Five Hundred Thousand Dollars ($1,500,000.00)
`
`(d) Awarding Plaintiff its attorneys’ fees and costs
`
`incurred in this action; and
`
`(e) That Plaintiff have such other and further relief
`
`as to the Court may seem just and proper.
`
`-
`
`_"":7f__ .
`—
` I."
`g;
`éL‘2%éy‘p
`’
`. LE;L-gé:l
`STEVEN R. SUTTON
`
`Attorney for Plaintiff
`630 Third Avenue,
`15th Floor
`
`New York, New York 10017
`
`(212) 696-0090
`
`10
`
`12 of 13
`12 of 13
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`

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`FILED: NEW YORK COUNTY CLERK 04/09/2017 10:13 PM
`FILED: NEW YORK COUNTY CLERK 04m2017 10:13 P
`
`NYSCEF DOC. NO.
`1
`NYSCEF DOC. NO. 1
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`INDEX NO. 651903/2017
`INDEX NO- 651903/2017
`
`
`
`
`
`R«C«IV«D VYSCEF: 04/09/2017
`RECEIVED NYSCEF: 04/09/2017
`
`VERIFICATION
`
`SS.:
`
`) )
`
`)
`
`STATE OF NEW YORK
`
`COUNTY OF NEW YORK
`
`MAXINE HAMILTON, being duly sworn, deposes
`
`and
`
`1.
`
`Deponent
`
`is one of
`
`the Plaintiffs in the
`
`says:
`
`within action.
`
`2.
`
`Deponent has
`
`read the foregoing
`
`Complaint
`
`and
`
`knows
`
`the
`
`contents
`
`thereof;
`
`and
`
`the
`
`same
`
`is
`
`true,
`
`to
`
`Deponent's
`
`own knowledge,
`
`except
`
`as
`
`to the matters
`
`therein
`
`stated to be alleged upon information and belief,
`
`and as
`
`to
`
`those matters, Deponent believes them to be true.
`
`3.
`
`This Verification is made
`
`by Deponent,
`
`because the essential
`
`facts
`
`in the pleadings are within the
`
`personal
`
`knowledge
`
`and/or belief
`
`of Deponent,
`
`and
`
`because
`
`Deponent has been authorized to execute the within document on
`
`behalf of Plaintiff.
`
`JW‘AXL46lbwI;L‘y. L5,“;
`
`
`
`MAXINE HAMILTON
`
`worn to before me this
`1% day of April, 2017
`
`
`
`11
`
`13 of 13
`13 of 13
`
`

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