Court Dismisses Roommate's Claim of Illusory Tenancy

Landlord sued to evict rent-stabilized tenant for nonprimary residence. Landlord claimed that tenant lived and worked in Switzerland, and that she had sublet the apartment to an occupant without landlord’s permission. The trial court ruled for landlord. Tenant admitted that she no longer lived in the apartment as her primary residence. Occupant claimed that there was an illusory tenancy and that she was entitled to remain as a rent-stabilized tenant. Instead the court found that tenant and occupant participated in a scheme to hide a sublet from landlord. In 2007, when landlord sued to evict tenant for illegal subletting, both tenant and occupant claimed that occupant was tenant’s roommate. Tenant and occupant repeatedly made this claim to landlord, submitting to inspections and even setting up a joint bank account. There was no profiteering by tenant, who charged occupant only the legal regulated rent. 

68-74 Thompson Realty LLC v. Heard: 50 Misc.3d 1225(A), 2016 NY Slip Op 50269(U) (Civ. Ct. NY; 3/8/16; Kraus, J)