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ERA Realty Co. v. RBS Properties

Appellate Division of the Supreme Court of New York, Second Department
Aug 17, 1992
185 A.D.2d 871 (N.Y. App. Div. 1992)

Opinion

August 17, 1992

Appeal from the Supreme Court, Nassau County (McCabe, J.).


Ordered that the appeal from the order dated June 12, 1990, is dismissed, without costs or disbursements, as that order was superseded by the order dated September 18, 1990, made upon reargument; and it is further,

Ordered that the order dated September 18, 1990, is modified, by deleting the provision thereof which granted that branch of the defendants' motion which was to dismiss the first cause of action to recover damages for conversion, and substituting therefor a provision denying that branch of the motion; as so modified, the order is affirmed insofar as reviewed, without costs or disbursements.

On July 1, 1986, Sylvia Charnoff and the plaintiff ERA Realty Co. entered into a written 20-year lease for the premises known as 660 Rockaway Turnpike, in Cedarhurst. The lease expressly provided that ERA had the right to assign the lease. On January 1, 1988, with the landlord's consent, ERA assigned its lease to the defendant RBS Properties. In consideration for the assignment RBS paid ERA $50,000. In 1988, RBS defaulted upon its rent payments, whereupon Charnoff commenced a summary nonpayment proceeding in the District Court of Nassau County against both ERA and RBS.

RBS admitted its nonpayment of rent, but denied that it owed any rent. It also interposed a cross claim against ERA to recover damages for fraud and breach of contract. ERA did not appear in the District Court proceeding. ERA's default on the cross claim resulted in a judgment in RBS's favor in the principal sum of $50,000.

On August 22, 1989, after RBS obtained a default judgment against ERA, the Sheriff of Nassau County levied upon ERA's bank account.

By order to show cause dated September 5, 1989, ERA moved to vacate the default judgment on the ground that the court lacked subject matter jurisdiction. Subsequently, the Appellate Term for the Ninth and Tenth Judicial Districts found that the District Court did indeed lack jurisdiction.

ERA then commenced the instant action against RBS and its attorney Kenneth Reiver alleging conversion and abuse of process. Thereafter, RBS moved, inter alia, to dismiss the complaint. The Supreme Court granted the motion.

However, we conclude that the complaint sufficiently alleges a cause of action to recover damages for conversion. Since the default judgment was entered in a court which lacked subject matter jurisdiction, the judgment was null and void and an action may be brought for conversion (see, Day v. Bach, 87 N.Y. 56). The judgment and execution afforded no protection to the defendants because a void process furnishes no justification to a party and the defendants became converters ab initio liable for the consequences of their acts as if the judgment and execution never existed (see, Day v. Bach, supra; Ford Motor Credit Co. v. Hickey Ford Sales, 62 N.Y.2d 291, 303; Silberstein v. Presbyterian Hosp., 95 A.D.2d 773; Siegel v. Northern Blvd. 80th St. Corp., 31 A.D.2d 182). The defendants' attorney has no privilege or immunity because an attorney is liable if he or she causes irregular process to be issued which occasions loss to the party against whom it is enforced (see, Silberstein v. Presbyterian Hospital, supra, at 774; Bornstein v. Silverman, 9 A.D.2d 363). Thus, ERA has satisfied its burden of demonstrating a prima facie cause of action for conversion.

We have considered the appellant's remaining contentions and find them to be without merit. Balletta, J.P., O'Brien, Ritter and Copertino, JJ., concur.


Summaries of

ERA Realty Co. v. RBS Properties

Appellate Division of the Supreme Court of New York, Second Department
Aug 17, 1992
185 A.D.2d 871 (N.Y. App. Div. 1992)
Case details for

ERA Realty Co. v. RBS Properties

Case Details

Full title:ERA REALTY CO., Appellant, v. RBS PROPERTIES et al., Respondents

Court:Appellate Division of the Supreme Court of New York, Second Department

Date published: Aug 17, 1992

Citations

185 A.D.2d 871 (N.Y. App. Div. 1992)
586 N.Y.S.2d 831

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