Ruling in Manhattan landlord-tenant dispute may have broader implications for serving LLCs with lawsuits, attorney says amNewYork

"New York Civil Court Judge Allison Greenfield dismissed a suit filed by landlords UNG 3 Realty and 36 East 20th Street Realty's against Indian restaurant Passerine LLC, finding that, because the restaurant is registered as an LLC, the landlords improperly served it by simply dropping off service papers to a person on the primesis, rather than a manager or stakeholding member of the business."

"Under the state's Real Property Actions and Proceedings Law 735, which dictates how entities can be served, simply dropping service papers off at a business to any employee is a permissible way to serve corporations, joint-stocks or other unincorporated associations. Since LLCs aren't specifically included in that more relaxed statute, Greenfield said the landlord would need to personally serve a member or manager of the LLC or serve it through the Secretary of State, in accordance with Civil Practice Law and Rules 311-a, a statute developed specifically with instructions for serving LLCs."

"Mitchell Zingman, a partner at Braverman Greenspun who isn't involved in this case but frequently represents both tenants and landlords in rent nonpayment cases, said he found the ruling notable and out of the norm. According to him, many LLCs have been served by landlords simply dropping service papers off at their place of business. Additionally, he said attorneys and judges have not historically argued or ruled that LLCs need to be served differently than other entities, despite the technical differences in law."

Judge Allison Greenfield dismissed a suit by landlords UNG 3 Realty and 36 East 20th Street Realty against Passerine LLC, ruling that service by leaving papers with a person on the premises was improper because the business is an LLC. Real Property Actions and Proceedings Law 735 permits dropping service papers at a business for corporations and unincorporated associations but does not include LLCs. Greenfield required personal service on an LLC member or manager or service via the Secretary of State under Civil Practice Law and Rules 311-a. Attorney Mitchell Zingman observed that serving LLCs at their premises has been common despite the statutory distinction.

Read at www.amny.com