Disputed Claims of Improper Deregulation Required More Fact-Finding

Tenants of two apartments in the same building sued landlord in November 2019 for rent overcharge and improper deregulation of their apartments. They claimed that they were rent stabilized and asked the court to rule in their favor without a trial. They also argued that landlord acted fraudulently to deregulate their apartments. Landlord, in turn, asked the court to stay the court case while the DHCR determined the effect of initial apartment registrations and tenants' possible fair market rent appeal (FMRA).

The court ruled for tenants to the extent of denying landlord's counterclaim for abuse of process. The court denied tenants' request for lease reformation at this time as premature. The disputed deregulations occurred before HSTPA was passed in June 2019, and there were triable issues of fact as to whether the apartments were properly deregulated prior to the dates tenants moved in. The court ordered one of the tenants to withdraw his pending DHCR complaint since tenant wished to pursue his claim in court.

Dixon v. 1819 Weeks Ave. Realty Corp.: Index No. 161138/2019, 2023 NY Slip Op 33485(U)(Sup. Ct. NY; 10/4/23; Latin, J)