Court Grants Tenant Discovery Where Tenant Claims Landlord Engaged in Fraudulent Scheme

Landlord sued to evict tenants and claimed that the apartment had been high-rent vacancy deregulated. Tenants claimed that they were rent stabilized and asked the court for permission to conduct pre-trial  discovery. The court ruled for tenants, finding that, under the totality of the circumstances, they had shown sufficient facts to raise a colorable claim of a fraudulent scheme to deregulate the apartment. There were multiple inconsistencies raised by landlord in the DHCR rent registration, including unexplained rent increases, different and overlapping tenancies, and the re-registering of the apartment. In addition, amendments to the rent stabilization law in late 2023 provide that, "nothing in this act, or the HSTPA, or prior law, shall be construed as restricting, impeding, or diminishing the use of records of any age or type going back to any date that may be relevant, for purposes of determining the status of any apartment under the rent stabilization law."

309E75 Stone LLC v. Ramos: Index No. L&T320376-23/NY, NYLJ 6/28/24, p. 17, col. 3 (Civ. Ct. NY; 6/28/24; Gonzalez, J)