Condo Offering Plan Didn't Protect Unregulated Tenants

Landlord sued to evict unregulated tenants after their leases expired. Tenants asked the court to dismiss the cases. Their building was undergoing a condominium conversion, and they claimed that the Martin Act and the offering plan protected them from eviction. The court ruled for tenants. Landlord appealed and won. Since tenants' leases had expired by the time that the New York State attorney general had accepted landlord's offering plan, tenants were no longer "tenants in occupancy" under the Martin Act. They were merely holding over. Tenants also argued that, under the eighth amendment to the offering plan, they were to be treated as tenants in occupancy. But that provision didn't squarely address this legal question and an informal opinion letter from the attorney general's office was submitted too late to be considered on appeal.

322 West 57th Owner, LLC v. Penhurst Productions, Inc.: NYLJ, 12/8/08, p. 28, col. 2 (App. T. 1 Dept.; McKeon, PJ, Davis, Heitler, JJ)