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Loretto v. Teleprompter Manhattan CATV Corp.

Citations: 53 N.Y.2d 124; 423 N.E.2d 320; 440 N.Y.S.2d 843; 1981 N.Y. LEXIS 2471

Court: New York Court of Appeals; May 7, 1981; New York; State Supreme Court

Narrative Opinion Summary

In a case addressing the legality of a New York statute mandating landlords to allow cable television installations on their properties, the court affirmed the statute as a valid exercise of police power. The plaintiff, who had purchased an apartment building, challenged the statute's constitutionality, claiming it constituted a taking without just compensation. The case involved a class action and intervention motions, with the City of New York and the Attorney-General supporting the statute's validity. The court ruled that section 828 does not require compensation, thereby exercising police power rather than eminent domain. The plaintiff's standing was upheld despite her transferring property ownership post-filing, and administrative remedies were deemed unnecessary for challenging the statute's facial constitutionality. The court found that landlords cannot demand excessive fees for cable installations, emphasizing the statute's role in promoting industry growth and tenant interests. The Appellate Division's decision was affirmed, solidifying the legal framework governing landlord-tenant relations in the context of cable television installations.

Legal Issues Addressed

Administrative Remedies and Constitutional Challenges

Application: Exhaustion of administrative remedies is unnecessary when challenging the constitutionality of a statute on its face.

Reasoning: Administrative remedies under statute do not need to be exhausted before challenging the constitutionality of the statute as a whole.

Eminent Domain vs. Police Power

Application: The mandate for cable installation under section 828 is an exercise of police power, not an eminent domain action, as it does not require compensation to property owners.

Reasoning: The statute does not require compensation to property owners, suggesting legislative intent to exercise police power rather than eminent domain.

Landlord-Tenant Relationship and Cable Installation

Application: Landlords cannot interfere with cable installations on their properties, and any fees for installation must be reasonable and regulated.

Reasoning: Landlords are prohibited from demanding or accepting payments from tenants for cable television services beyond amounts deemed reasonable by regulatory authorities.

Police Power and Property Use

Application: Section 828 of the Executive Law is upheld as a valid exercise of police power, allowing cable television installations without constituting a taking requiring compensation.

Reasoning: A statute mandating landlords to permit the installation of cable television facilities on their properties for the benefit of tenants is deemed a valid exercise of police power, not constituting a taking that requires compensation.

Standing and Justiciable Controversy

Application: The plaintiff has standing to challenge the statute despite transferring property ownership, as she remains the sole stockholder and the transfer occurred post-filing.

Reasoning: Loretto has standing in this justiciable controversy, and her transfer of the property to Hargate did not cause the action to abate, as she remains the sole stockholder and the transfer occurred post-filing.