705 Gerard LLC v. Nunez

In 705 Gerard LLC v. Nunez, January 16, 2016, Bronx L & T Index #: 6475/15, Petitioner predicated its cause of action upon five non-payment proceedings brought between 2004 and 2013, to wit: a proceeding in 2004, 2010 and 2012 and two proceedings in 2013. The Court engaged in an extensive analysis of the applicability of the six-year statute of limitations as applied by various cases both in the lower courts and at the appellate level. In doing so, the Court sought to clarify the apparent confusion between the number of non-payment cases or defaults required to constitute a prima facie case of a chronic non-payment holdover based upon a violation of substantial lease obligation and a Petitioner's ability to incorporate non-payment cases commenced more than six years prior to the commencement of the holdover. In delineating a standard, the Court held that there must be a pattern of unjustified defaults, to wit: three non-payment cases or two non-payment cases and at least one rent default outside the context of a court proceeding, which are temporally clustered. When this pattern is established, a chronic non-payment holdover based upon a breach of a substantial lease obligation cause of action accrues, at which time the six-year statute of limitation pursuant to CPLR 213(2) begins to run.