Plaza Road Cooperative, Inc. v. Finn

In 1979, Mae Finn (defendant) leased an apartment from Plaza Road, Inc., later Plaza Road Cooperative, Inc. (Plaza Road) (plaintiff). Plaza Road later converted Finn’s apartment building into a cooperative residential association. Finn entered into an owner-occupant agreement with Plaza Road that contained terms similar to those usually found in a landlord-tenant agreement, like the right to quiet possession, limits on who may occupy the apartment, and limits on the right to make alterations to the apartment. However, the agreement also contained provisions inconsistent with those of a landlord-tenant relationship, including a provision limiting Plaza Road’s liability for maintaining public areas and for providing services like heat and water that are required of landlords. Under the agreement, Finn also waived certain rights and defenses that are available to tenants as a matter of course. Further, Finn as owner-occupier was given complete control over the premises and had the right to inspect Plaza Road’s books. The agreement also provided that any action under the agreement for failure comply with the terms of the agreement, including the failure to pay rent, would be brought in the district court as a summary-dispossession action. The agreement stated that such a summary-dispossession action would be pursuant to a New Jersey statute that provided for summary-dispossession proceedings in the context of the landlord-tenant relationship. Further, Finn, as the owner-occupier of the apartment, agreed to submit to the jurisdiction of the district court for such an action. Plaza Road later sought to pursue a summary-dispossession action against Finn in the district court. Plaza Road maintained that the court had jurisdiction to hear the summary-dispossession proceedings on the grounds that (1) the agreement between the parties conferred jurisdiction on the court and (2) the relationship between Finn and Plaza Road was a landlord-tenant relationship. The court dismissed the action for lack of jurisdiction, and Plaza Road appealed.