In a motion for Summary Judgment brought by DDWWW to unify ownership of a ground lease and building in a corporate trustee, the Manhattan Surrogate ruled that Article 6th of the RPAPL (“common-law ejectment”) remains viable and controls after the enactment of the 2019 HSTPA, Article 7th of the RPAPL
DDWWW represented the corporate trustee, BNY Mellon, N.A. from the inception of these Surrogate’s proceedings in 2015. By her initial decision, Hon. Rita Mella determined that the Court had jurisdiction to determine a landlord-tenant dispute involving a trust and its ground lease. Matter of Carpenter, 2015 N.Y. MISC. LEXIS 31 (Sur. Ct. N.Y. Co.). Over the next few years multiple motions (including for contempt), were filed by DDW resulting in the collection of over $750,000 from the tenant. Based upon the tenant’s chronic breaches of the ground lease, the trustee filed for summary judgment to terminate the tenant’s rights to possession and ownership of the building (despite the tenant’s right to renew the 21-year ground lease in perpetuity). The tenant opposed the motion arguing that Article 7th of the Real Property Actions and Proceedings Law (“RPAPL”) as enacted by the Housing Stability and Tenant Protection Act of 2019 (“HSTPA”) controlled and permitted the tenant to cure the defaults. DDWWW argued that the ground lease created a “condition subsequent” permitting common law ejectment, and not a “conditional limitation” as applies to actions under RPAPL Article 7th. The Surrogate agreed that the trust was entitled to judgment under RPAPL Article 6th in common-law ejectment. The Surrogate also determined that the HSPTA could not be applied retroactively, as the trustee had filed for the relief prior to the enactment of the HSTPA. By this result, the trustee united the fee, joining the land and building in ownership, which together generated a greater value and asset for the trust in excess of $20 million. Estate of Catherine Hammersley Carpenter, 3/19/2025 N.Y.L.J. 22, col. 4 (Sur. Ct. N.Y. Co.). Steven P. DeRicco represented BNY Mellon, N.A. in these proceedings.