Parker 72nd Assocsiates v. Isaacs

Civil Court of the City of New York
1980 N.Y. Misc. LEXIS 2938, 436 N.Y.S.2d 542, 109 Misc. 2d 57 (1980)
ELI5:

Rule of Law:

A pro se attorney may be awarded attorney's fees under Real Property Law section 234 when the lease provides for the landlord to recover such fees and the attorney-tenant successfully defends a nonpayment proceeding, as the 'incurred' requirement is satisfied by a pecuniary loss or diversion of professional time.


Facts:

  • An attorney-tenant resided in a 15-year-old, 21-story, 275-unit 'luxury' building located at 520 East 72nd Street, Manhattan.
  • During January, February, and March of 1980, the tenant experienced 17 instances of no heat and 13 instances of no hot water in the apartment.
  • The building owner installed a new control system for the heating plant in January and a new valve for the hot water system in February.
  • The owner's resident manager and superintendent admitted that there had been complaints about heat and hot water services around the time of these installations.
  • The tenant's lease included a provision for the owner to recover attorney's fees if successful in litigation.
  • The tenant, representing himself pro se in the legal proceeding, diverted professional time to the case and compensated his law firm by working additional hours, without losing personal income.

Procedural Posture:

  • The owner of the building initiated a nonpayment proceeding against the tenant in Civil Court for unpaid rent.
  • The tenant, acting as a pro se attorney, asserted a defense claiming an abatement of rent due to a breach of the warranty of habitability.
  • The tenant also requested an award of counsel fees pursuant to Real Property Law section 234.

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Issue:

Does Real Property Law section 234 allow a pro se attorney-tenant to recover attorney's fees when the lease provides for the landlord to recover such fees and the pro se attorney successfully defends a nonpayment proceeding?


Opinions:

Majority - Diane A. Lebedeff, J.

Yes, Real Property Law section 234 allows a pro se attorney-tenant to recover attorney's fees when the lease provides for the landlord to recover such fees and the pro se attorney successfully defends a nonpayment proceeding. The court first addressed the warranty of habitability claim. It found that the tenant’s credible testimony, supported by a fellow tenant’s records, established 17 instances of no heat and 13 instances of no hot water during January, February, and March 1980. The owner’s witnesses, while generally denying problems, admitted to installing new heating and hot water control systems during that period and receiving complaints. The court held that a failure to provide heat or hot water constitutes a danger to life, health, and safety, thus breaching the warranty of habitability under Real Property Law section 235-b. Adopting a 50% abatement formula, consistent with the Office of Rent Control and affirmed in Park West Mgt. Corp. v Mitchell, the court granted an abatement of $35.54 for lack of hot water and $67.72 for lack of heat. Regarding attorney's fees, the court acknowledged that section 234 creates a reciprocal right for tenants to recover fees if the lease grants the owner such a right. Although lacking direct New York precedent, the court relied on the historical right of a pro se attorney to recover litigation expenses, as explored in Kopper v Willis (1881). Kopper emphasized that a pro se attorney incurs "pecuniary loss or damage" by devoting professional time, knowledge, and experience to their own cause, which they would otherwise have to pay another attorney to render. The court also noted the Second Circuit’s view in Crooker v United States Dept. of Treasury that legislative intent might allow such awards for claimants diverting time from "income-producing activities." The court concluded that the statutory requirement for fees to be "incurred" is broad enough to encompass a pro se attorney's pecuniary loss or diversion of professional time. While the tenant lost no direct income, the diversion of professional time compensated by additional work hours satisfied the 'incurred' requirement. The court awarded $150 in attorney's fees, rejecting the use of the tenant's firm's billing rate because it includes elements beyond the attorney's time, and explicitly excluded time spent on obtaining the fee award itself.



Analysis:

This case significantly clarifies the interpretation of 'attorney's fees incurred' under Real Property Law section 234, expanding it to include the value of a pro se attorney's diverted professional time. By recognizing this, the court reinforces the reciprocal nature of attorney's fee clauses in leases and ensures that attorney-tenants are not disadvantaged by representing themselves in meritorious claims. This ruling provides a strong incentive for pro se attorney-tenants to enforce their rights, such as habitability, without the additional burden of unrecoverable legal costs, thereby promoting parity between landlords and tenants in litigation involving such lease provisions. It also sets a precedent for how the quantum of such fees should be determined, moving away from standard billing rates.

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