Back Rent, Rent Abatement, and Conversion Issues Must Be Resolved by Arbitration

Facts: Landlord and loft tenant agreed in 1995 and 1997 that issues concerning tenant's conversion of units in landlord's building would be resolved under the Loft Law. In 1996, tenant received an arbitration award granting a rent abatement of base rent until landlord delivered architectural plans for the conversion in a form approvable by DOB. In 2003, landlord sued to evict tenant for nonpayment of rent. Tenant then sued landlord in Supreme Court, claiming that landlord couldn't go forward with a nonpayment case. Court: Tenant wins. Issues related to back rent, rent abatements, and conversion under the Loft Law must be resolved by arbitration. Although prior arbitration proceedings permitted an abatement of rent under the 1995 agreement, it was unclear whether those abatements ever ended based on landlord's compliance with other terms of the agreement.

Howell v. Coraster Holding Co.: NYLJ, 8/27/03, p. 21, col. 3 (Sup. Ct. Queens; Hart, J)