Leo Yau v. Lucy Yau

2021 NY Slip Op 51029(U)

Leo Yau, Respondent, v. Lucy Yau, Appellant.

2021-38 K C

Supreme Court of New York, Second Department

October 22, 2021

Unpublished Opinion

Wenig Saltiel, LLP (Dan M. Blumenthal of counsel), for appellant.

Donald Eng, for respondent.

PRESENT:: THOMAS P. ALIOTTA, P.J., MICHELLE WESTON, WAVNY TOUSSAINT, JJ

Appeal from a decision of the Civil Court of the City of New York Kings County (Cheryl J. Gonzales, J.), dated October 31 2019, deemed from a final judgment of that court entered November 4, 2019 (see CPLR 5512 [a]). The final judgment upon the decision, after a nonjury trial, awarded landlord possession in a holdover summary proceeding.

ORDERED that the final judgment is affirmed, without costs.

In this holdover proceeding to recover possession of a condominium apartment and rent arrears, tenant interposed an affirmative defense that she "h[eld] a constructive trust on the subject premises."

At a nonjury trial, there was evidence presented that the parties are siblings; that landlord, the owner of the apartment allowed tenant to reside in the apartment; that tenant made payments for her occupancy that "covered" landlord's costs, including his mortgage and monthly maintenance; that landlord reserved one of the two bedrooms in the apartment for his own occasional use; and that tenant had made occasional payments directly to the condominium board for maintenance and repairs to the apartment. Following the trial, insofar as is relevant to this appeal, by decision dated October 31, 2019, the Civil Court awarded landlord possession. Tenant's appeal from the decision is deemed from the final judgment entered upon the decision on November 4, 2019 (see CPLR 5512 [a]).

A claim of a constructive trust can be asserted as an affirmative equitable defense to a summary proceeding (see Fizzinoglia v Capozzoli, 58 Misc.3d 149[A], 2018 NY Slip Op 50081[U] [App Term, 2d Dept, 9th & 10th Jud Dists 2018]; Freire v Fajardo, 28 Misc.3d 137 [A], 2010 NY Slip Op 51453[U] [App Term, 2d Dept, 2d, 11th & 13th Jud Dists 2010]). "A constructive trust is the formula through which the conscience of equity finds expression. When property has been acquired in such circumstances that the holder of the legal title may not in good conscience retain the beneficial interest, equity converts him or her into a trustee" (Bekas v Valiotis, 191 A.D.3d 937, 938 [2021] [internal quotation marks and brackets omitted]; see Kaprov v Stalinsky, 145 A.D.3d 869, 870 [2016]). "To obtain the remedy of a constructive trust, a party is generally required to establish four factors, or elements, by clear and convincing evidence: (1) a confidential or fiduciary relationship, (2) a promise, (3) a transfer in reliance thereon, and (4) unjust enrichment flowing from the breach of the promise" (Delidimitropoulos v Karantinidis, 186 A.D.3d 1489, 1490 [2020]; see Hernandez v Florian, 173 A.D.3d 1144, 1145 [2019]; Sanxhaku v Margetis, 151 A.D.3d 778, 779 [2017]). "These factors, or elements, serve only as a guideline, and a constructive trust may still be imposed even if all four elements are not established, provided that those factors are substantially present" (Delidimitropoulos v Karantinidis, 186 A.D.3d at 1490-1491 [internal quotation marks and citations omitted]; see Monterosso v Garguilo, 181 A.D.3d 586, 586-587 [2020]; Seidenfeld v Zaltz, 162 A.D.3d 929, 935 [2018]).

Here tenant failed to establish that the elements of a constructive trust were substantially present. Although the parties, as familial relatives, shared a confidential relationship (see e.g. Rowe v Kingston, 94 A.D.3d 852, 853-854 [2012]; Marini v Lombardo, 79 A.D.3d 932, 933-934 [2010]; Reiner v Reiner, 100 A.D.2d 872,...