Court Certifies Class Action for Overcharge Claims of J-51 Building Tenants

Tenants in several buildings who lived in apartments deregulated while the buildings received J-51 tax benefits sued landlord in 2018, claiming rent overcharge and improper deregulation. Tenants sought certification of their lawsuit as a class action. The court ruled for tenants, finding that they met the prerequisites for class action status set forth in CPLR Sections 901(a) and 902. The five threshold requirements under CPLR 901(a) are: (a) the class is so numerous that joinder of all members is practical; (b) there are common questions of law or fact for each class member; (c) the claims or defenses of the parties are typical of those of the class; (d) the representative parties will fairly and adequately protect the interests of the class; and (e) a class action is better than other available methods for the fair and efficient determination of the controversy. Tenants showed documentation that 837 apartments were improperly deregulated under J-51. It didn't matter that each overcharge claim would have to be calculated separately since the legal issues were the same. The lead plaintiffs stated that they understood their rights and obligations to represent the class, and had selected experienced legal counsel to represent the group. And litigating the claims through a class action, rather than filing individual complaints, would save judicial resources.

Thome v. Jack Parker Corp.: Index No. 152510/2018, 2021 NY Slip Op 31842(U)(Sup. Ct. NY; 6/1/21; Perry, J)