Carnegie Management Co., Oppenheimer

In Carnegie Management Co., Oppenheimer, 2001 WL 1673567 (AT 1st Dept.) the deceased tenant of record had a lease that was to expire on November 30, 1999. Prior to his death in September, 1999, he executed a two year lease renewal that would become effective on December 1, 1999 and expire on November 30, 2001. The petitioner commenced a licensee holdover in February, 2000. The trial court dismissed the proceeding on the basis that the lease renewal prior to the deceased's death extended the term of the lease requiring the naming of the estate as a necessary party. In a divided opinion, the Appellate Term reversed, holding that the estate was not a necessary party " . . . as any possessory claim it had must be reasonably deemed to have terminated upon the expiration of the last lease in effect during the lifetime of the tenant of record i.e., on November 30, 1999." The court found that the tenant's election to renew the lease would not dictate a contrary result having died before the commencement of that term. As a result, the court concluded that the respondent, daughter of the deceased, was the real party of interest and her claim for succession could be properly adjudicated in that proceeding. The dissenting judge agreed with the lower court that the tenant's exercise of his option to renew his lease did not create a new lease but merely prolonged the original lease for a further period and, thus, was one entire term rather than two separate lease terms. As a result, since the tenant of record died before November 30, 2001, " . . . the unexpired lease term passed as personal property to his estate and his estate was therefore a necessary party to this eviction proceeding ."