FILED: NEW YORK COUNTY CLERK 07/30/2020 06:40 PM
`NYSCEF DOC. NO. 1
`
`INDEX NO. 653340/2020
`
`RECEIVED NYSCEF: 07/30/2020
`
`OF THE STATE
`COURT
`SUPREME
`OF NEW YORK
`COUNTY
`----------------------------
`1650 BROADWAY
`
`ASSOCIATES
`
`OF NEW YORK
`
`X
`
`INC.,
`
`Index
`
`No.
`
`653340/2020
`
`Plaintiff,
`
`Date
`
`Purchased:
`
`July
`
`30,
`
`2020
`
`-against-
`
`SUMMONS
`
`STERLING
`STATES
`and C&I
`
`LANDLORD
`CORP.,
`& INVESTMENT
`REALTY
`BROADWAY,
`L.L.C.,
`
`UNITED
`COMPANY
`
`---------------------------------------X
`
`Defendants.
`
`TO THE ABOVE
`
`NAMED
`
`DEFENDANTS:
`
`PLAINTIFF
`COUNTY
`
`DESIGNATES
`AS THE PLACE
`
`NEW YORK
`OF TRIAL
`
`VENUE IS BASED UPON THE SITUS OF
`AND PLAINTIFF'S
`THE PROPERTY
`AND DEFENDANTS'
`BUSINESS
`
`YOU ARE HEREBY
`
`SUMMONED
`
`to answer
`
`the Complaint
`
`in this
`
`action
`
`and
`
`to serve
`
`a copy
`
`of
`
`your
`
`Answer,
`
`or,
`
`if
`
`the Complaint
`
`is not
`
`served
`
`with
`
`this Summon,
`
`to serve
`
`a notice
`
`of
`
`appearance
`
`within
`
`after
`
`service
`
`this
`
`on Plaintiff's
`
`attorney
`
`20 days
`
`the
`
`of
`
`Summons,
`
`exclusive
`
`of
`
`the day
`
`of service
`
`(or within
`
`30 days
`
`after
`
`the
`
`service
`
`is complete
`
`if
`
`this
`
`Summons
`
`is not
`
`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 Complaint.
`
`Dated:
`
`New York
`New York,
`2020
`30,
`July
`
`SILLS
`Attorneys
`
`CUMMIS
`for
`Plaintiff
`
`& GROSS
`
`P.C.
`
`By:
`
`a~
`
`Floor
`10178
`
`Esq.
`
`B. Newman,
`David
`K. Sapir,
`Lori
`Esq.
`101 Park
`Avenue,
`New York,
`New York
`643-7000
`(212)
`
`28*
`
`7394887v1
`
`1 of 15
`
`

`

`FILED: NEW YORK COUNTY CLERK 07/30/2020 06:40 PM
`NYSCEF DOC. NO. 1
`
`INDEX NO. 653340/2020
`
`RECEIVED NYSCEF: 07/30/2020
`
`TO:
`
`LANDLORD
`STERLING
`1650
`Suite
`Broadway,
`New York
`New York,
`
`1200
`10019
`
`CORP.
`
`UNITED
`STATES
`c/o Sterling
`Landlord
`1650
`Suite
`Broadway,
`New York,
`New York
`
`REALTY
`Corp.
`1200
`
`10019
`
`C&I
`BROADWAY,
`c/o Sterling
`Landlord
`Suite
`1650
`Broadway,
`New York,
`New York
`
`L.L.C.
`Corp.
`1200
`10019
`
`& INVESTMENT
`
`COMPANY
`
`2
`
`2 of 15
`
`

`

`FILED: NEW YORK COUNTY CLERK 07/30/2020 06:40 PM
`NYSCEF DOC. NO. 1
`
`INDEX NO. 653340/2020
`
`RECEIVED NYSCEF: 07/30/2020
`
`OF THE STATE
`COURT
`SUPREME
`OF NEW YORK
`COUNTY
`------------------------
`1650 BROADWAY
`
`ASSOCIATES
`
`OF NEW YORK
`
`-------------------------X
`
`INC.,
`
`Index
`
`No.
`
`653340/2020
`
`Plaintiff,
`
`-against-
`
`VERIFIED
`
`COMPLAIN_T
`
`STERLING
`REALTY
`BROADWAY,
`
`LANDLORD
`& INVESTMENT
`L.L.C.,
`
`UNITED
`CORP.,
`COMPANY
`
`STATES
`and C&I
`
`-----------------------
`
`Defendants.
`
`-----X
`
`Plaintiff-Tenant
`
`1650
`
`Broadway
`
`Associates
`
`Inc.
`
`("Tenant"),
`
`by
`
`its attorneys
`
`Sills
`
`Cummis
`
`& Gross
`
`P.C.,
`
`as and
`
`for
`
`its Complaint
`
`against
`
`defendants
`
`Sterling
`
`Landlord
`
`Corp.,
`
`United
`
`States
`
`Realty
`
`& Investment
`
`Coiñpenly
`
`and C&I
`
`Broadway,
`
`L.L.C.
`
`(collectively,
`
`the
`
`"Landlord"),
`
`alleges
`
`as follows:
`
`1.
`
`This
`
`is an action
`
`seeking,
`
`inter
`
`alia,
`
`injunctive
`
`and
`
`declaratory
`
`relief
`
`arising
`
`out
`
`of
`
`Landlord's
`
`improper
`
`attempt
`
`to terminate
`
`its
`
`Lease
`
`(as defined
`
`below)
`
`with
`
`Tenant
`
`for
`
`allegedly
`
`to make
`
`certain
`
`rent
`
`payments
`
`in the midst
`
`of
`
`the COVID-19
`
`as set
`
`forth
`
`in the
`
`failing
`
`pandemic,
`
`purported
`
`notice
`
`of default
`
`dated
`
`July
`
`16, 2020
`
`(the
`
`"Default
`
`Notice").
`
`Contrary
`
`to the
`
`allegations
`
`in the Default
`
`Notice,
`
`Tenant
`
`does
`
`not
`
`owe
`
`the
`
`rent
`
`claimed
`
`therein.
`
`In fact,
`
`Tenant
`
`is owed
`
`a rent
`
`credit
`
`in the
`
`amount
`
`of $72,580.65
`
`for
`
`a portion
`
`of
`
`the March
`
`2020
`
`rent
`
`it paid.
`
`PARTIES
`
`2.
`
`Tenant
`
`is
`
`a domestic
`
`business
`
`corporation,
`
`and
`
`occupies
`
`approximately
`
`2,742
`
`square
`
`feet
`
`on the
`
`ground
`
`floor,
`
`1,398
`
`square
`
`feet
`
`on the mezzanine
`
`floor,
`
`and
`
`5,375
`
`square
`
`feet
`
`in
`
`the
`
`basement
`
`(collectively,
`
`the
`
`"Premises")
`
`of
`
`the
`
`building
`
`known
`
`as
`
`and
`
`located
`
`at
`
`1650
`
`Broadway
`
`a/k/a
`
`200 West
`
`51"
`
`Street,
`
`New York,
`
`New York
`
`(the
`
`"Building").
`
`7390225
`
`3 of 15
`
`

`

`FILED: NEW YORK COUNTY CLERK 07/30/2020 06:40 PM
`NYSCEF DOC. NO. 1
`
`INDEX NO. 653340/2020
`
`RECEIVED NYSCEF: 07/30/2020
`
`3.
`
`Upon
`
`information
`
`and
`
`belief,
`
`defendant
`
`Sterling
`
`Landlord
`
`Corp.
`
`is
`
`a domestic
`
`business
`
`corporation
`
`with
`
`oilices
`
`located
`
`at 1650
`
`Broadway,
`
`Suite
`
`1200, New York,
`
`New York.
`
`4.
`
`Upon
`
`information
`
`and
`
`belief,
`
`defendant
`
`United
`
`States
`
`Realty
`
`& Investment
`
`Compãñy
`
`is
`
`a New
`
`Jersey
`
`business
`
`corporation
`
`located
`
`c/o
`
`Sterling
`
`Landlord
`
`Corp.,
`
`1650
`
`Broadway,
`
`Suite
`
`1200, New York,
`
`New York.
`
`5.
`
`Upon
`
`information
`
`and
`
`belief,
`
`defendant
`
`C&I
`
`Broadway
`
`L.L.C.
`
`is a limited
`
`liability
`
`company
`
`duly
`
`authorized
`
`to do business
`
`in New York
`
`located
`
`c/o
`
`Sterling
`
`Landlord
`
`Corp.,
`
`1650
`
`Broadway,
`
`Suite
`
`1200, New York,
`
`New York.
`
`T_HE
`
`LEASE
`
`6.
`
`Tenant
`
`had
`
`leased
`
`the Premises
`
`from
`
`Landlord's
`
`predecessor-in-interest
`
`pursuant
`
`Lease").
`
`to a lease
`
`dated
`
`October
`
`8, 1992,
`
`as thereafter
`
`amended
`
`(the
`
`"Original
`
`7.
`
`Pursuant
`
`to
`
`the
`
`terms
`
`of
`
`the Original
`
`Lease,
`
`Tenant
`
`operated
`
`"Ellen's
`
`Stardust
`
`Diner."
`
`8.
`
`"Ellen's
`
`Stardust
`
`Diner"
`
`is an iconic
`
`New York
`
`City
`
`restaurant
`
`located
`
`in the
`
`heart
`
`of Broadway.
`
`9.
`
`Pursuant
`
`to a written
`
`commercial
`
`Agreement
`
`of Lease made
`
`effective
`
`as of
`
`June
`
`1,
`
`2017
`
`(the
`
`"Lease"),
`
`Landlord
`
`leased
`
`to Tenant
`
`the Premises
`
`for
`
`use
`
`as a full-service
`
`restaurant,
`
`consistent
`
`with
`
`the
`
`quality
`
`of
`
`"Ellen's
`
`Stardust
`
`Diner,"
`
`on the
`
`terms
`
`and
`
`conditions
`
`more
`
`fully
`
`set
`
`forth
`
`in the
`
`Lease.
`
`10.
`
`The
`
`term of
`
`the
`
`Lease
`
`is ten
`
`(10)
`
`years,
`
`expiring
`
`on May
`
`31,
`
`2027.
`
`7390225
`
`2
`
`4 of 15
`
`

`

`FILED: NEW YORK COUNTY CLERK 07/30/2020 06:40 PM
`NYSCEF DOC. NO. 1
`
`INDEX NO. 653340/2020
`
`RECEIVED NYSCEF: 07/30/2020
`
`T,ENANT
`
`DOES NOT OWE RENT UNDER
`OF THE LEASE
`
`T_HE CASUALTY
`
`CLAUSE
`
`11.
`
`Paragraph
`
`9(b)
`
`of
`
`the
`
`Lease
`
`provides,
`
`in pertinent
`
`part:
`
`following
`is usable...;
`is
`damaged
`
`If
`
`the Premises
`fire
`or other
`
`by
`day
`which
`Premises
`business
`
`economically
`abate
`for
`
`are partially
`casualty...the
`the
`
`casualty
`provided,
`and
`operated
`
`or
`damaged
`Rent...shall
`
`rendered
`partially
`be apportioned
`the
`to
`the
`part
`of
`if a substantial
`portion
`part
`cannot
`operate
`any
`balance
`of
`Premises
`the
`Rent
`and Additional
`Rent
`
`unusable
`from
`the
`Premises
`of
`the
`of
`the
`in
`an
`will
`
`according
`however,
`Tenant
`in the
`Base
`
`previously
`feasible
`entire
`
`the
`
`manner,
`Premises...
`
`12.
`
`Paragraph
`
`9(c)
`
`of
`
`the
`
`Lease
`
`provides,
`
`in pertinent
`
`part:
`
`If
`the Premises
`or other
`fire
`to the
`time
`when
`the
`Landlord...
`
`are totally
`then
`casualty,
`of
`the
`Premises
`
`casualty
`shall
`
`or
`rendered
`damaged
`wholly
`shall
`be proportionately
`the Rent
`and
`thenceforth
`shall
`cease
`have
`been
`repaired
`and
`
`unusable
`paid
`until
`the
`restored
`
`by
`up
`date
`
`by
`
`13.
`
`14.
`
`Tenant
`
`paid
`
`rent
`
`through
`
`March
`
`2020.
`
`On March
`
`16,
`
`2020,
`
`pursuant
`
`to
`
`state
`
`and
`
`local
`
`government
`
`mandates,
`
`businesses
`
`of
`
`the
`
`damage
`
`were
`
`forced
`
`to
`
`close
`
`in
`
`light
`
`property
`
`caused
`
`by
`
`the COVID-19
`
`virus
`
`and
`
`the
`
`dangerous
`
`propensity
`
`of
`
`such
`
`damage
`
`to the
`
`public.
`
`15.
`
`On March
`
`16, 2020,
`
`New York
`
`City
`
`Mayor
`
`Bill
`
`De Blasio
`
`specifically
`
`noted
`
`the
`
`"property
`
`loss
`
`and
`
`damage"
`
`caused
`
`by
`
`the COVID-19
`
`virus,
`
`which
`
`has
`
`resulted
`
`in forced
`
`closure
`
`of many
`
`businesses
`
`due
`
`to such
`
`property
`
`damage.
`
`16.
`
`On March
`
`16,
`
`2020,
`
`Tenant
`
`was
`
`forced
`
`to
`
`cease
`
`operating
`
`its
`
`restaurant
`
`due
`
`to
`
`COVID-19.
`
`7390225
`
`3
`
`5 of 15
`
`

`

`FILED: NEW YORK COUNTY CLERK 07/30/2020 06:40 PM
`NYSCEF DOC. NO. 1
`
`INDEX NO. 653340/2020
`
`RECEIVED NYSCEF: 07/30/2020
`
`TENANT
`
`IS OWED A RENT
`
`CREDIT
`
`17.
`
`Paragraphs
`
`9(c)
`
`of
`
`the
`
`Lease
`
`provides
`
`"if
`
`the
`
`Premises
`
`are...rendered
`
`wholly
`
`unusable
`
`by...other
`
`casualty,
`
`then
`
`the Rent
`
`shall
`
`be
`
`proportionately
`
`paid
`
`up
`
`to
`
`the
`
`time
`
`of
`
`the
`
`casualty."
`
`18.
`
`Rent
`
`was
`
`only
`
`due
`
`and
`
`owing
`
`to
`
`Landlord
`
`through
`
`March
`
`16,
`
`2020,
`
`the
`
`date
`
`on
`
`which
`
`Tenant
`
`incurred
`
`the
`
`casualty.
`
`19.
`
`As
`
`such,
`
`since
`
`Tenant
`
`paid
`
`rent
`
`beyond
`
`March
`
`16, 2020,
`
`it
`
`is thus
`
`owed
`
`a rent
`
`credit
`
`in the
`
`amount
`
`of $72,580.65.
`
`TENANT
`
`DOES NOT OWE RENT
`AS THE PURPOSE
`HAS BEEN FRUSTRATED
`LEASE
`
`OF THE
`
`20.
`
`Paragraph
`
`3 of
`
`the
`
`Lease
`
`states,
`
`in relevant
`
`part:
`
`to
`
`and
`use
`shall
`Tenant
`terms
`hereof,
`occupy
`the Premises
`of
`portions
`and mezzanine
`floor
`basement,
`least
`at
`restaurant
`a full-service
`consistent
`of
`the
`operation
`Diner"
`Stardust
`restaurant
`with
`"Ellen's
`the
`Lease...Throughout
`the Premises
`the Existing
`at
`ecñduct
`and
`Tenant
`shall
`operate
`continuously
`hours
`of
`business
`the
`first
`during
`in
`the
`area,
`legal
`with
`holidays,
`event...[Emphasis
`
`Subject
`
`the
`ground
`
`quality
`operated
`Term
`restaurant
`restaurants
`connection
`force
`majeure
`
`the
`for
`in
`
`currently
`
`the
`its
`class
`in
`only
`or other
`
`under
`
`on
`
`a
`
`same
`
`operating
`basis,
`daily
`a casualty,
`added].
`
`excluding
`condemnation
`
`21.
`
`Tenant
`
`cannot
`
`operate
`
`as a full-service
`
`restaurant,
`
`as such
`
`operation
`
`is a significant,
`
`governmentally-recognized
`
`hazard
`
`to public
`
`health
`
`during
`
`the
`
`on-going
`
`COVID-19
`
`pandemic.
`
`22.
`
`Further,
`
`in accordance
`
`with
`
`Executive
`
`Order
`
`No.
`
`202.3
`
`issued
`
`by New York
`
`State
`
`Governor
`
`Andrew
`
`M. Cuomo
`
`and
`
`titled
`
`"Continuing
`
`Temporary
`
`Suspension
`
`and Modification
`
`of
`
`Laws
`
`relating
`
`to
`
`the Disaster
`
`Emergency,"
`
`Tenant
`
`was
`
`and
`
`is legally
`
`required
`
`to
`
`cease
`
`serving
`
`patrons
`
`food
`
`or beverage
`
`on-premises.
`
`Tenant
`
`has
`
`complied
`
`with
`
`its
`
`legal
`
`obligations
`
`and
`
`ceased
`
`such
`
`service
`
`as of March
`
`16, 2020.
`
`7390225
`
`4
`
`6 of 15
`
`

`

`FILED: NEW YORK COUNTY CLERK 07/30/2020 06:40 PM
`NYSCEF DOC. NO. 1
`
`INDEX NO. 653340/2020
`
`RECEIVED NYSCEF: 07/30/2020
`
`23.
`
`24.
`
`To
`
`date,
`
`the
`
`restaurant
`
`remains
`
`closed.
`
`Since
`
`the purpose
`
`of
`
`the Lease
`
`has been
`
`temporarily
`
`frustrated
`
`due
`
`to events
`
`beyond
`
`the
`
`control
`
`of
`
`the
`
`parties,
`
`Tenant
`
`does
`
`not
`
`owe
`
`rent
`
`as demanded
`
`by Landlord.
`
`LANDLORD'S
`
`NOTICE
`
`IS FATALLY
`
`DEFECTIVE
`
`25.
`
`On July
`
`16,
`
`2020,
`
`Landlord
`
`served
`
`Tenant
`
`with
`
`the Default
`
`Notice,
`
`purporting
`
`to
`
`Tenant
`
`that
`
`it was
`
`in default
`
`under
`
`the terms
`
`of
`
`the
`
`non-payment
`
`notify
`
`Additional
`
`Rent.
`
`Lease
`
`for
`
`of Base
`
`Rent
`
`and
`
`26.
`
`Tenant
`
`disputes
`
`the
`
`validity
`
`of
`
`the Default
`
`Notice,
`
`and
`
`disputes
`
`that
`
`it
`
`is in default
`
`of any
`
`of
`
`its obligations
`
`under
`
`the
`
`Lease.
`
`27.
`
`28.
`
`Tenant
`
`submits
`
`that
`
`the Default
`
`Notice
`
`is insufficient
`
`to terminate
`
`the
`
`Lease.
`
`Tenant
`
`further
`
`submits
`
`that
`
`the
`
`Default
`
`Notice
`
`was
`
`served
`
`in
`
`violation
`
`of
`
`the
`
`Executive
`
`Orders
`
`of New York
`
`State Governor
`
`Andrew
`
`M. Cuomo.
`
`29.
`
`Notwithstanding,
`
`Tenant
`
`is ready,
`
`willing
`
`and
`
`able
`
`to cure
`
`any
`
`alleged
`
`defaults
`
`set
`
`forth
`
`in the Default
`
`Notice
`
`in the
`
`event
`
`the Court
`
`were
`
`to determine
`
`that
`
`a Default
`
`presently
`
`exists.
`
`LANDLORD
`
`IS ENGAGING
`
`IN COMMERCIAL
`
`TENANT
`
`HARASSMENT
`
`30.
`
`New
`
`York
`
`City
`
`Administrative
`
`Code
`
`22-902
`
`§
`
`defines
`
`commercial
`
`tenant
`
`harassment
`
`as any
`
`act
`
`or omission
`
`by a Landlord
`
`that
`
`is intended
`
`to cause
`
`a commercial
`
`tenant
`
`to
`
`or
`
`rights
`
`under
`
`or other
`
`rental
`
`agreement.
`
`vacate
`
`covered
`
`property,
`
`to surrender
`
`or waive
`
`any
`
`a lease
`
`31.
`
`On May
`
`13, 2020,
`
`the City
`
`Counsel
`
`for
`
`the City
`
`of New York
`
`passed
`
`an amendment
`
`to
`
`Local
`
`Law
`
`185
`
`(2019)
`
`adding
`
`language
`
`regarding
`
`the
`
`harassment
`
`of
`
`commercial
`
`tenants
`
`impacted
`
`by
`
`the COVID-19
`
`pandemic.
`
`32.
`
`The
`
`amendment
`
`revised
`
`Paragraph
`
`11 of
`
`subdivision
`
`a of
`
`section
`
`22-902
`
`of
`
`the
`
`Administrative
`
`Code
`
`of
`
`the City
`
`of New York
`
`to state
`
`in relevant
`
`part:
`
`7390225
`
`5
`
`7 of 15
`
`

`

`FILED: NEW YORK COUNTY CLERK 07/30/2020 06:40 PM
`NYSCEF DOC. NO. 1
`
`INDEX NO. 653340/2020
`
`RECEIVED NYSCEF: 07/30/2020
`
`11.
`tenant's
`commercial
`rent
`
`any
`
`owed
`
`during
`
`tenant
`a commercial
`threatening
`impacted
`business
`as...a
`status
`of a rent
`receipt
`tenant's
`the COVID-19
`
`by
`concession
`period...
`
`based
`
`on...the
`
`commercial
`or
`
`COVID-19,
`or
`forbearance
`
`the
`for
`
`33.
`
`The
`
`amendment
`
`further
`
`defines
`
`a business
`
`as being
`
`"impacted
`
`by COVID-19
`
`if
`
`it
`
`was
`
`subject
`
`to
`
`seating
`
`occupancy,
`
`or
`
`on-premises
`
`service
`
`limitations
`
`pursuant
`
`to
`
`an
`
`executive
`
`order..."
`
`or
`
`if
`
`certain
`
`declining
`
`revenue
`
`thresholds
`
`were met.
`
`34.
`
`Tenant
`
`meets
`
`the
`
`definition
`
`of a business
`
`impacted
`
`by COVID-19
`
`as defined
`
`by the
`
`City
`
`Counsel
`
`for
`
`the City
`
`of New York.
`
`35.
`
`By
`
`serving
`
`an improper
`
`Default
`
`Notice
`
`threatening
`
`Tenant's
`
`leasehold
`
`interest
`
`in
`
`the midst
`
`of
`
`the COVID-19
`
`pandemic,
`
`which
`
`has
`
`significantly
`
`and
`
`substantially
`
`affected
`
`Tenant,
`
`Landlord
`
`is engaged
`
`in commercial
`
`tenant
`
`harassment.
`
`AS AND_FOR
`
`A FIRST
`
`CAUSE
`
`OF ACTION
`
`and
`
`each
`
`and
`
`allegation
`
`contained
`
`in paragraphs
`
`"1"
`
`36.
`
`Tenant
`
`repeats
`
`realleges
`
`every
`
`through
`
`"35"
`
`above
`
`as if
`
`fully
`
`set
`
`forth
`
`herein.
`
`37.
`
`Upon
`
`information
`
`and
`
`belief,
`
`the Default
`
`Notice
`
`is a predicate
`
`to the termination
`
`of
`
`the
`
`Lease
`
`by Landlord.
`
`38.
`
`The Default
`
`Notice
`
`is insufficient
`
`to constitute
`
`a predicate
`
`notice
`
`to terminate
`
`the
`
`Lease.
`
`39.
`
`40.
`
`Tenant
`
`disputes
`
`that
`
`it
`
`is in default
`
`under
`
`the
`
`Lease
`
`as alleged
`
`in the Default
`
`Notice.
`
`Tenant
`
`is ready,
`
`willing
`
`and
`
`able
`
`to cure
`
`any
`
`default
`
`under
`
`the
`
`Lease
`
`as alleged
`
`the Default
`
`Notice,
`
`if and
`
`to the
`
`extent
`
`the Court
`
`ultimately
`
`determines
`
`that
`
`there
`
`is any
`
`default
`
`be cured.
`
`41.
`
`There
`
`is a dispute
`
`between
`
`the
`
`parties
`
`as to the
`
`respective
`
`rights
`
`and
`
`legal
`
`relations
`
`in
`
`to
`
`by and
`
`between
`
`Tenant
`
`and
`
`Landlord
`
`pursuant
`
`to the
`
`Lease.
`
`7390225
`
`6
`
`8 of 15
`
`

`

`FILED: NEW YORK COUNTY CLERK 07/30/2020 06:40 PM
`NYSCEF DOC. NO. 1
`
`INDEX NO. 653340/2020
`
`RECEIVED NYSCEF: 07/30/2020
`
`42.
`
`Because
`
`of
`
`this
`
`dispute,
`
`a judicial
`
`determination
`
`and
`
`declaration
`
`as to the respective
`
`rights
`
`of
`
`the
`
`parties
`
`is necessary
`
`in
`
`order
`
`that
`
`Tenant's
`
`rights
`
`may
`
`be determined
`
`and
`
`adjudged
`
`without
`
`Tenant
`
`experiencing
`
`a loss
`
`of
`
`its
`
`valuable
`
`and
`
`unique
`
`rights
`
`under
`
`the
`
`Lease.
`
`43.
`
`Tenant
`
`will
`
`suffer
`
`irreparable
`
`harm
`
`unless
`
`the
`
`status
`
`quo
`
`is maintained
`
`and
`
`termination
`
`of
`
`the
`
`Lease
`
`is prevented
`
`pending
`
`the
`
`determination
`
`of
`
`this
`
`action
`
`on the merits.
`
`law.
`
`44.
`
`45.
`
`Tenant
`
`has no adequate
`
`remedy
`
`at
`
`Tenant
`
`requests
`
`judgment
`
`(i)
`
`declaring
`
`that
`
`(A)
`
`Tenant
`
`has not
`
`breached
`
`the
`
`Lease
`
`as alleged
`
`in the Default
`
`Notice;
`
`and
`
`(B)
`
`Landlord
`
`cannot
`
`terminate
`
`the
`
`Lease
`
`based
`
`upon
`
`the
`
`Default
`
`Notice
`
`or
`
`the
`
`grounds
`
`alleged
`
`therein;
`
`(ii)
`
`restraining
`
`and
`
`enjoining
`
`Landlord
`
`from
`
`(A)
`
`taking
`
`any
`
`action
`
`to cancel
`
`or
`
`terminate
`
`the
`
`Lease
`
`based
`
`upon
`
`the Default
`
`Notice,
`
`or
`
`(B)
`
`instituting
`
`upon
`
`the Default
`
`or
`
`in the
`
`alternative
`
`any
`
`actions
`
`or proceedings
`
`against
`
`Tenant
`
`based
`
`Notice;
`
`(a)
`
`declaring
`
`that,
`
`if
`
`there
`
`has
`
`been
`
`a breach
`
`of
`
`the
`
`Lease,
`
`Tenant
`
`should
`
`be
`
`afforded
`
`reasonable
`
`opportunity
`
`to cure
`
`said
`
`breach;
`
`and
`
`(b)
`
`extending
`
`the
`
`time
`
`by which
`
`Tenant
`
`may
`
`cure
`
`any
`
`breach
`
`found
`
`by
`
`the Court
`
`to such
`
`further
`
`time
`
`as the Court may
`
`direct
`
`in order
`
`to permit
`
`Tenant
`
`to cure
`
`said
`
`breach.
`
`AS AND FOR A SECOND
`
`CAUSE
`
`OF ACTION
`
`Tenant
`
`repeats
`
`and
`
`realleges
`
`each
`
`and
`
`allegation
`
`contained
`
`in paragraphs
`
`"1"
`
`46.
`
`"45"
`
`through
`
`as if
`
`fully
`
`set
`
`forth
`
`herein.
`
`every
`
`47.
`
`Given
`
`the
`
`casualty
`
`event
`
`of March
`
`16, 2020,
`
`Tenant
`
`is entitled
`
`to a rent
`
`credit
`
`in
`
`the
`
`amount
`
`of $72,580.65
`
`for
`
`the
`
`overpayment
`
`of
`
`rent
`
`in the month
`
`of March
`
`2020.
`
`48.
`
`49.
`
`50.
`
`7390225
`
`Landlord
`
`failed
`
`to give
`
`Tenant
`
`the
`
`rent
`
`credit
`
`it was
`
`entitled
`
`to receive.
`
`Upon
`
`information
`
`and
`
`belief,
`
`Landlord
`
`disputes
`
`that
`
`it owes
`
`Tenant
`
`a rent
`
`credit.
`
`There
`
`is a justiciable
`
`controversy
`
`between
`
`the
`
`parties.
`
`7
`
`9 of 15
`
`

`

`FILED: NEW YORK COUNTY CLERK 07/30/2020 06:40 PM
`NYSCEF DOC. NO. 1
`
`INDEX NO. 653340/2020
`
`RECEIVED NYSCEF: 07/30/2020
`
`51.
`
`A judicial
`
`determination
`
`is necessary
`
`as to whether
`
`Tenant
`
`is entitled
`
`to a rent
`
`credit
`
`in the
`
`amount
`
`of $72,580.65.
`
`52.
`
`53.
`
`Tenant
`
`has no adequate
`
`remedy
`
`at
`
`law.
`
`By
`
`reason
`
`of
`
`the
`
`foregoing,
`
`Tenant
`
`requests
`
`judgment
`
`declaring
`
`that
`
`Tenant
`
`is
`
`entitled
`
`to receive
`
`a rent
`
`credit
`
`in the
`
`amount
`
`of $72,580.65.
`
`AS AND FOR A THIRD
`
`CAUSE
`
`OF ACTION
`
`54.
`
`Tenant
`
`repeats
`
`and
`
`realleges
`
`each
`
`and
`
`every
`
`allegation
`
`contained
`
`in paragraphs
`
`"1"
`
`through
`
`"53"
`
`as if
`
`fully
`
`set
`
`forth
`
`herein.
`
`55.
`
`56.
`
`The
`
`Lease
`
`requires
`
`Tenant
`
`to operate
`
`as a full-service
`
`restaurant.
`
`Due
`
`to the
`
`state
`
`and
`
`local
`
`governmental
`
`orders
`
`relating
`
`to the COVID-19
`
`pandemic,
`
`the
`
`purpose
`
`of
`
`the
`
`Lease
`
`has been
`
`frustrated.
`
`57.
`
`Tenant
`
`unable
`
`a full-service
`
`restaurant
`
`due
`
`to the
`
`state
`
`and local
`
`has been
`
`to operate
`
`governmental
`
`orders
`
`relating
`
`to the COVID-19
`
`pandemic
`
`since March
`
`16, 2020.
`
`58.
`
`Due
`
`to frustration
`
`of purpose
`
`of
`
`the
`
`Lease,
`
`Tenant
`
`is relieved
`
`from
`
`the
`
`payment
`
`of
`
`rent
`
`as set
`
`forth
`
`in the Default
`
`Notice.
`
`59.
`
`Due
`
`to frustration
`
`of purpose
`
`of
`
`the
`
`Lease,
`
`the
`
`Lease
`
`term
`
`is tolled
`
`until
`
`the
`
`state
`
`and
`
`local
`
`governmental
`
`restrictions
`
`on tenant's
`
`use
`
`of
`
`the Premises
`
`are lifted.
`
`60.
`
`Upon
`
`information
`
`and
`
`belief,
`
`Landlord
`
`does
`
`not
`
`agree
`
`that
`
`Tenant
`
`is entitled
`
`to a
`
`rent
`
`abatement
`
`for
`
`the
`
`period
`
`of
`
`time
`
`during
`
`which
`
`Tenant
`
`is completely
`
`prohibited
`
`from
`
`operating
`
`a full-service
`
`restaurant
`
`due
`
`to the
`
`state
`
`and
`
`local
`
`governmental
`
`orders
`
`relating
`
`to the COVID-19
`
`pandemic.
`
`7390225
`
`61.
`
`There
`
`is a justiciable
`
`controversy
`
`between
`
`the parties.
`
`8
`
`10 of 15
`
`

`

`FILED: NEW YORK COUNTY CLERK 07/30/2020 06:40 PM
`NYSCEF DOC. NO. 1
`
`INDEX NO. 653340/2020
`
`RECEIVED NYSCEF: 07/30/2020
`
`62.
`
`A judicial
`
`determination
`
`is necessary
`
`as
`
`to whether
`
`Tenant
`
`is entitled
`
`to
`
`a rent
`
`abatement
`
`for
`
`the
`
`period
`
`of
`
`time
`
`it
`
`is subject
`
`to the
`
`governmental
`
`prohibitions
`
`related
`
`to COVID-
`
`19.
`
`63.
`
`64.
`
`Tenant
`
`has
`
`no adequate
`
`remedy
`
`at
`
`law.
`
`By reason
`
`of
`
`the
`
`foregoing,
`
`Tenant
`
`requests
`
`a judgment
`
`(i)
`
`declaring
`
`that
`
`Tenant
`
`is
`
`entitled
`
`a rent
`
`abatement
`
`for
`
`the
`
`period
`
`of
`
`time
`
`to
`
`which
`
`it
`
`is
`
`subject
`
`to
`
`the
`
`state
`
`and
`
`local
`
`governmental
`
`restrictions
`
`prohibiting
`
`full
`
`service
`
`dining,
`
`and
`
`(ii)
`
`tolling
`
`the
`
`Lease
`
`term until
`
`such
`
`state
`
`and
`
`local
`
`governmental
`
`restrictions
`
`permit
`
`Tenant
`
`to legally
`
`operate
`
`its
`
`business
`
`as set
`
`forth
`
`in the
`
`Lease.
`
`AS AND FOR A FOURTH
`
`CAUSE
`
`OF ACTION
`
`65.
`
`Tenant
`
`repeats
`
`and
`
`realleges
`
`each
`
`and
`
`every
`
`allegation
`
`contained
`
`in paragraphs
`
`"1"
`
`"64"
`
`herein.
`
`through
`
`as if
`
`fully
`
`set
`
`forth
`
`66.
`
`The Default
`
`Notice
`
`is defective
`
`on its
`
`face
`
`because
`
`it
`
`is ambiguous,
`
`fails
`
`to comply
`
`with
`
`the
`
`requisite
`
`standards
`
`of
`
`specificity
`
`for
`
`such
`
`notice.
`
`67.
`
`By
`
`reason
`
`of
`
`the
`
`foregoing,
`
`the Default
`
`Notice
`
`is
`
`ineffective,
`
`null
`
`and
`
`void
`
`and
`
`Tenant
`
`is entitled
`
`to a declaration
`
`to that
`
`effect
`
`from
`
`this Court.
`
`68.
`
`There
`
`is a justiciable
`
`controversy
`
`between
`
`the parties.
`
`Tenant
`
`at
`
`law.
`
`69.
`
`70.
`
`has no adequate
`
`remedy
`
`A judicial
`
`determination
`
`as to whether
`
`the Default
`
`Notice
`
`is legally
`
`effective
`
`or of
`
`no
`
`force
`
`or effect
`
`is necesury
`
`in order
`
`for
`
`Tenant
`
`to be
`
`given
`
`sufficient
`
`notice
`
`of
`
`its
`
`rights
`
`and
`
`obligations
`
`under
`
`the
`
`Lease,
`
`as may
`
`be
`
`determined
`
`and
`
`adjudged
`
`without
`
`Tenant
`
`incurring
`
`the
`
`danger
`
`of
`
`losing
`
`its
`
`valuable
`
`leasehold
`
`estate
`
`by
`
`Landlord
`
`terminating
`
`the
`
`Lease.
`
`7390225
`
`9
`
`11 of 15
`
`

`

`FILED: NEW YORK COUNTY CLERK 07/30/2020 06:40 PM
`NYSCEF DOC. NO. 1
`
`INDEX NO. 653340/2020
`
`RECEIVED NYSCEF: 07/30/2020
`
`71.
`
`By
`
`reason
`
`of
`
`the
`
`foregoing,
`
`Tenant
`
`requests
`
`judgment
`
`declaring
`
`that
`
`the Default
`
`Notice
`
`is null
`
`and
`
`void
`
`and
`
`of no legal
`
`force
`
`and
`
`effect.
`
`AS AND FOR A FIFTH_CAUSE
`
`OF ACTION
`
`72.
`
`Tenant
`
`repeats
`
`and
`
`realleges
`
`each
`
`and
`
`every
`
`allegation
`
`contained
`
`in paragraphs
`
`"1"
`
`through
`
`"71"
`
`as if
`
`fully
`
`set
`
`forth
`
`herein.
`
`73.
`
`Landlord's
`
`issuance
`
`of
`
`the Default
`
`Notice
`
`is an
`
`act
`
`that
`
`would
`
`reasonably
`
`cause
`
`or
`
`Tenant
`
`to
`
`vacate
`
`the
`
`property,
`
`surrender
`
`or waive
`
`any
`
`rights
`
`under
`
`a lease
`
`or
`
`other
`
`rental
`
`agreement.
`
`74.
`
`Landlord's
`
`issuance
`
`of
`
`the Default
`
`Notice
`
`is also
`
`a violation
`
`of
`
`the May
`
`13,
`
`2020
`
`Amendment
`
`to
`
`the New
`
`York
`
`City
`
`Administrative
`
`Code
`
`§ 22-902
`
`since
`
`Tenant
`
`is
`
`a business
`
`impacted
`
`by COVID-19.
`
`75.
`
`Tenant
`
`is granted
`
`the
`
`right
`
`to bring
`
`a private
`
`cause
`
`of action
`
`for
`
`commercial
`
`tenant
`
`pursuant
`
`to New York
`
`Administrative
`
`Code
`
`harassment
`
`City
`
`§ 22-903.
`
`76.
`
`As
`
`a result
`
`of
`
`Landlord's
`
`harassment,
`
`civil
`
`penalties
`
`pursuant
`
`to New
`
`York
`
`City
`
`Administrative
`
`Code
`
`§ 22-903
`
`should
`
`be imposed
`
`on Landlord.
`
`77.
`
`Furthermore,
`
`this
`
`Court
`
`should
`
`award
`
`such
`
`other
`
`and
`
`further
`
`relief
`
`as
`
`the Court
`
`deems
`
`appropriate,
`
`including
`
`but
`
`not
`
`limited
`
`to punitive
`
`damages
`
`and
`
`reasonable
`
`attorneys'
`
`fees
`
`and
`
`court
`
`costs.
`
`WHEREFORE,
`
`Tenant
`
`requests
`
`judgment
`
`agaimt
`
`Landlord
`
`as follows:
`
`First
`
`Cause
`
`A.
`
`On the
`
`of Action,
`
`(i)
`
`declaring
`
`that
`
`(A)
`
`Tenant
`
`has
`
`not
`
`breached
`
`the
`
`Lease
`
`as alleged
`
`in the Default
`
`Notice;
`
`and
`
`(B)
`
`Landlord
`
`cannot
`
`terminate
`
`the
`
`Lease
`
`based
`
`upon
`
`the Default
`
`Notice
`
`or
`
`the
`
`grounds
`
`alleged
`
`therein;
`
`(ü)
`
`restraining
`
`and
`
`enjoining
`
`Landlord
`
`from
`
`(A)
`
`taking
`
`any
`
`action
`
`to cancel
`
`or
`
`terminate
`
`the
`
`Lease
`
`based
`
`upon
`
`the Default
`
`Notice,
`
`or
`
`(B)
`
`instituting
`
`7390225
`
`10
`
`12 of 15
`
`

`

`FILED: NEW YORK COUNTY CLERK 07/30/2020 06:40 PM
`NYSCEF DOC. NO. 1
`
`INDEX NO. 653340/2020
`
`RECEIVED NYSCEF: 07/30/2020
`
`any
`
`actions
`
`or proceedings
`
`against
`
`Tenant
`
`based
`
`upon
`
`the Default
`
`Notice;
`
`or
`
`in the
`
`alternative
`
`(a)
`
`declaring
`
`that,
`
`if
`
`there
`
`has
`
`been
`
`a breach
`
`of
`
`the
`
`Lease,
`
`Tenant
`
`should
`
`be
`
`afforded
`
`reasonable
`
`opportunity
`
`to cure
`
`said
`
`breach;
`
`and
`
`(b)
`
`extending
`
`the
`
`time
`
`by which
`
`Tenant
`
`may
`
`cure
`
`any
`
`breach
`
`found
`
`by
`
`the Court
`
`to such
`
`further
`
`time
`
`as the Court
`
`may
`
`direct
`
`in order
`
`to permit
`
`Tenant
`
`to cure
`
`said
`
`breach;
`
`B.
`
`On the Second
`
`Cause
`
`of Action,
`
`declaring
`
`that
`
`Tenant
`
`is entitled
`
`to receive
`
`a rent
`
`credit
`
`in the
`
`amount
`
`of $72,580.65;
`
`C.
`
`On
`
`the
`
`Third
`
`Cause
`
`of
`
`Action,
`
`(i)
`
`declaring
`
`that
`
`Tenant
`
`is
`
`entitled
`
`to
`
`a rent
`
`for
`
`of
`
`it
`
`is subject
`
`state
`
`local
`
`abatement
`
`the
`
`period
`
`time
`
`which
`
`to the
`
`and
`
`governmental
`
`restrictions
`
`prohibiting
`
`full
`
`service
`
`dining,
`
`and
`
`(ii)
`
`tolling
`
`the
`
`Lease
`
`term
`
`until
`
`such
`
`state
`
`and
`
`local
`
`governmental
`
`restrictions
`
`permit
`
`Tenant
`
`to legally
`
`operate
`
`its business
`
`as set
`
`forth
`
`in the
`
`Lease;
`
`D.
`
`On the Fourth
`
`Cause
`
`of Action,
`
`declaring
`
`that
`
`the Default
`
`Notice
`
`is null
`
`and
`
`void
`
`and
`
`of no legal
`
`force
`
`and
`
`effect;
`
`E.
`
`On the
`
`Fifth
`
`Cause
`
`of Action,
`
`imposing
`
`a civil
`
`penalty
`
`on
`
`Landlord
`
`pursuant
`
`to
`
`New
`
`York
`
`City
`
`Administrative
`
`Code
`
`§ 22-903,
`
`together
`
`with
`
`punitive
`
`damages
`
`and
`
`reasonably
`
`attorneys'
`
`fees
`
`and Court
`
`costs;
`
`and
`
`F.
`
`Granting
`
`with
`
`such
`
`other
`
`and
`
`further
`
`relief
`
`as this Court
`
`deems
`
`just
`
`and
`
`proper.
`
`7390225
`
`11
`
`13 of 15
`
`

`

`FILED: NEW YORK COUNTY CLERK 07/30/2020 06:40 PM
`NYSCEF DOC. NO. 1
`
`INDEX NO. 653340/2020
`
`RECEIVED NYSCEF: 07/30/2020
`
`Dated:
`
`July
`
`30,
`
`2020
`
`SILLS
`Attorneys
`
`CUMMIS
`for
`
`Plaintry
`
`& GROSS
`
`P.C.
`
`By:
`
`Esq.
`
`David
`Lori
`
`B. Newman,
`Esq.
`K. Sapir,
`28*
`101 Park
`Floor
`Avenue,
`New York
`New York,
`10178
`643-7000
`(212)
`
`7390225
`
`12
`
`14 of 15
`
`

`

`FILED: NEW YORK COUNTY CLERK 07/30/2020 06:40 PM
`NYSCEF DOC. NO. 1
`
`INDEX NO. 653340/2020
`
`RECEIVED NYSCEF: 07/30/2020
`
`VERIFICATION
`
`SS.:
`
`) )
`
`)
`
`STATE
`
`OF NEW YORK
`
`COUNTY
`
`OF NEW YORK
`
`KENNETH
`
`A. STURM.
`
`being
`
`duly
`
`sworn.
`
`deposes
`
`and
`
`says:
`
`1.
`
`2.
`
`I am the Secretary/Treasurer
`
`of
`
`1650
`
`Broadway
`
`Associates
`
`Inc..
`
`the plaintiff
`
`herein.
`
`I have
`
`read
`
`the
`
`foregoing
`
`Complaint
`
`and
`
`know
`
`the
`
`contents
`
`thereof:
`
`the
`
`same
`
`are
`
`true
`
`to my
`
`own
`
`knowledge.
`
`except
`
`as to those matters
`
`upon
`
`information
`
`and
`
`belief:
`
`and
`
`as to those
`
`matters.1
`
`believe
`
`them to be true.
`
`The
`
`basis
`
`of such
`
`and
`
`and
`
`the
`
`books
`
`and
`
`records
`
`maintained
`
`by
`
`1650
`
`Broadway
`
`Associates
`
`Inc,
`
`and
`
`its
`
`agents
`
`and
`
`information
`
`belief
`
`are my own
`
`knowledge.
`
`employees.
`
`3.
`
`This
`
`verification
`
`is made
`
`by me
`
`and
`
`not
`
`by
`
`Plaintiff
`
`because
`
`the
`
`Plaintiff
`
`is a
`
`domestic
`
`business
`
`corporation
`
`such
`
`that
`
`an individual
`
`with
`
`know
`
`'dge must
`
`verify
`
`on
`
`its behalf.
`
`Stateof:NewYork
`CountyOf:
`Manhattan
`Theforegoingdocumentwasacknowledged
`oreme
`2-S
`61cetsrut
`YokastaE.
`Blanco,Notary
`Expires:
`My Commission
`
`dayof hh
`Blyµrco-
`
`T.
`
`. 2020
`
`KF
`
`E fH A STURM
`
`Public
`June25,2021
`
`6
`
`ub i
`
`N
`
`ary
`
`TA E.
`
`''
`
`.
`
`15 of 15
`
`