Carnegie Hall Landlord Was Prime Tenant, Not Owner

Landlord claimed that it was the building’s prime tenant and had a sublease with tenants. Landlord sued to evict tenants upon expiration of their sublease. The apartment wasn’t subject to rent regulation. Tenants asked the court to dismiss the case. They claimed that an agreement between the City of New York and landlord, in effect from 1960 to 1987, wasn’t really a lease but a mortgage. So landlord was the owner of the building, not the prime tenant or net lessee. Tenants argued that since landlord’s ownership status ended 20 years earlier, landlord must offer tenants a renewal lease. The court ruled against tenants. Another court already had rejected tenants’ argument, so the issue had been resolved legally and couldn’t be raised again. The court ruled for landlord.

Carnegie Hall Corp. v. Williams: NYLJ, 2/20/08, p. 30, col. 1 (Civ. Ct. NY; Marton, J)