Corporate Tenant Wasn't Improperly Deregulated

Rent-stabilized tenant moved into an apartment in 1975. In 1996, landlord agreed to combine tenant's apartment with a vacant next-door apartment at tenant's expense and gave tenant a deregulated lease for the newly created apartment, even though the building was receiving J-51 tax benefits. In 2008, at tenant's request, landlord gave a renewal lease to tenant's corporate entity instead of to tenant. The renewal lease didn't identify tenant as a remaining tenant or name him as the intended occupant of the new corporate tenant. Tenant, now an occupant, and the corporate tenant later sued landlord, claiming improper deregulation of the apartment. The court denied landlord's request to dismiss the case.

Landlord appealed and won. Former tenant, now an occupant, wasn't entitled to a rent-stabilized lease renewal. And since occupant wasn't identified in the corporate tenant's lease as a particular individual for whom the apartment was rented, the corporate tenant wasn't entitled to rent-stabilization protection. 

Fox v. 12 East 88th LLC: 160 A.D.3d 401, 2018 NY Slip Op 02289 (App. Div. 1 Dept.; 4/3/18; Friedman, JP, Kahn, Gesmer [dissenting], Kern, Moulton, JJ)