Court Must Retry Claim That Renewal Lease Rent Was Too High

March 17, 2015

LVT Number: #26019

Landlord, a cooperative corporation, sued to evict tenant for refusing to renew his lease. The court ruled against landlord and dismissed the case because the extreme rent increase offered in the renewal offered by landlord to the long-term, nonpurchasing tenant was unconscionable. Landlord appealed and won. Tenant didn't claim as a defense or counterclaim that the lease was unconscionable. It was wrong for the court to base its decision on that grounds without giving the parties the chance to present evidence on that question as required by Real Property Law Section 235-c(2).

Landlord, a cooperative corporation, sued to evict tenant for refusing to renew his lease. The court ruled against landlord and dismissed the case because the extreme rent increase offered in the renewal offered by landlord to the long-term, nonpurchasing tenant was unconscionable. Landlord appealed and won. Tenant didn't claim as a defense or counterclaim that the lease was unconscionable. It was wrong for the court to base its decision on that grounds without giving the parties the chance to present evidence on that question as required by Real Property Law Section 235-c(2). The court also made no other finding that tenant's refusal to renew the lease was otherwise justified. A new trial was required. 

303 West 122nd Street HDFC v. Hussein: 46 Misc.3d 139(A), 2015 NY Slip Op 50131(U) (App. T. 1 Dept.; 2/20/15; Lowe III, PJ, Schoenfeld, Ling-Cohan, JJ)

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