Court Orders Joint Trial of Two Tenants Claiming Overcharge in 421-g Building

In separate court actions, two tenants sued landlord, claiming that they were improperly deregulated and being overcharged by landlord. The building received 421-g tax benefits. Landlord asked the court to consolidate the two cases since they raised common issues of law and fact. Tenants objected to this. In one case, tenant sought to be made part of a class action with other affected tenants. The other tenant didn't seek class action status. If a class action was approved, any tenants in that action couldn't seek triple damages. The court found that, despite their similarities, the two actions were substantially different due to the class action distinction. So, the court ruled that, in the interest of judicial economy, it wouldn't consolidate the cases but would permit discovery proceedings and a joint trial.

Alvarez v. EQR-71 Broadway A, LLC: Index No. 155275/2016, 2020 NY Slip Op 31249(U)(Sup. Ct. NY; 5/7/20; Jaffe, J)