Court Denies Class Action Status to Tenants Claiming Rent Overcharge Scheme

Tenants of 55 different apartments in 22 buildings owned or operated by landlord sued landlord in 2016 and claimed that landlord pursued a scheme designed to unlawfully inflate rents in violation of the Rent Stabilization Law. Tenants also sought class action status. After resolving some initial motion practice (see LVT #30474), the court granted landlord's request to deny class certification to the tenants. The allegedly common issue among the tenants was the existence of a "methodical attempt to inflate rents." But the court found that was irrelevant to the prospective class members' claims for relief, which would require proof as to damages and liability on a claim-by-claim basis. In addition, because resolution of the purported common issue would not meaningfully streamline the individual liability and damages determinations that would be required for every member of the proposed class, tenants had not established that a class action was superior to other methods of adjudicating the disputes.

Stafford v. A&E Real Estate Holdings, LLC: Index No. 655500/2016, 2025 NY Slip Op 30665(U)(Sup. Ct. NY; 2/26/25; Cohen, J)