Domen Holding Co. v. Aranovich, 1 N.Y.3d 116 (2003): Nuisance Claims and Chronic Late Rent Payments

Domen Holding Co. v. Aranovich, 1 N.Y.3d 116 (2003)

A landlord pursuing eviction based on nuisance must demonstrate the tenant’s actions interfered with the use or enjoyment of the property; chronic late rent payments alone, without aggravating circumstances, are insufficient to establish a nuisance claim.

Summary

Domen Holding Co., a cooperative building owner, initiated eviction proceedings against Aranovich, a rent-controlled tenant, alleging that her chronic late rental payments constituted a nuisance under New York City Rent and Eviction Regulations. The Civil Court initially dismissed the petition, but the Appellate Term reversed. After a trial, the Civil Court again dismissed the petition, finding no nuisance. The Appellate Term affirmed, as did the Appellate Division. The Court of Appeals affirmed, holding that while chronic late payments might support eviction for violating a substantial obligation of the tenancy, the landlord had failed to prove that the late payments interfered with the use or enjoyment of the property, a necessary element of a nuisance claim.

Facts

Domen Holding Co. owned shares in a cooperative building. Aranovich was a rent-controlled tenant in the building. Domen Holding Co. repeatedly had to institute nonpayment proceedings and serve rent demands on Aranovich due to her chronic tardiness in paying rent. Domen Holding Co. then brought a holdover proceeding seeking to evict Aranovich based on the argument that her lateness constituted a nuisance.

Procedural History

The Civil Court initially dismissed Domen Holding Co.’s petition. The Appellate Term reversed and remitted the case for trial. After trial, the Civil Court dismissed the petition again. The Appellate Term affirmed. The Appellate Division affirmed, and then granted Domen Holding Co. leave to appeal to the Court of Appeals.

Issue(s)

Whether chronic late payment of rent, without additional aggravating circumstances, constitutes a “nuisance” under the New York City Rent and Eviction Regulations sufficient to warrant eviction.

Holding

No, because Domen Holding Co. failed to demonstrate that Aranovich’s conduct interfered with the use or enjoyment of the property, an essential element of a nuisance claim. The court explicitly stated they were not deciding “whether chronic late payment or nonpayment of rent, when combined with aggravating circumstances, could ever support an eviction proceeding for a ‘nuisance’ within the meaning of the New York City Rent and Eviction Regulations.”

Court’s Reasoning

The Court of Appeals affirmed the dismissal of the petition because Domen Holding Co. pursued the case as a nuisance claim, not as a violation of a substantial obligation of the tenancy. To succeed on a nuisance claim, the landlord needed to show that the tenant’s conduct interfered with the use or enjoyment of their property. The court emphasized that the specific harm alleged by Domen Holding Co. was the repeated need to institute nonpayment proceedings. The court found this might have supported an eviction proceeding based on violation of a substantial obligation of tenancy, as stated in 9 NYCRR 2204.2[a][1]. Because Domen Holding Co. chose to proceed on the basis of nuisance, they were bound to prove interference with the use or enjoyment of property. As the court noted, “Having opted to pursue their remedy in the context of a nuisance case, petitioners were required to establish that respondent’s conduct ‘interfere[d] with the use or enjoyment’ of their property (see, e.g., Copart Indus. v Consolidated Edison Co., 41 NY2d 564, 568).” The court found that Domen Holding Co. failed to offer any evidence of such interference. The court explicitly declined to rule on whether chronic late payment, combined with aggravating factors, might constitute a nuisance.