Does Proprietary Lessee Owe Sublet Fees?

August 31, 2011

LVT Number: #23599

Landlord cooperative corporation sued to evict proprietary lessee for nonpayment of unpaid sublet fees. Proprietary lessee claimed that he was a holder of unsold shares and therefore exempt from sublet fees under the terms of his lease. He also questioned whether the sublet fees were “rent” since they weren’t identified as additional rent in landlord’s nonpayment petition. The court ruled for landlord without a trial, and proprietary lessee appealed. The case was reopened and sent back to the lower court.

Landlord cooperative corporation sued to evict proprietary lessee for nonpayment of unpaid sublet fees. Proprietary lessee claimed that he was a holder of unsold shares and therefore exempt from sublet fees under the terms of his lease. He also questioned whether the sublet fees were “rent” since they weren’t identified as additional rent in landlord’s nonpayment petition. The court ruled for landlord without a trial, and proprietary lessee appealed. The case was reopened and sent back to the lower court. A trial was needed to determine whether the proprietary lessee was a holder of unsold shares under the terms of his lease. Among other things, he claimed that neither he nor his family ever occupied the apartment .

Saunders Street Owners, Ltd. v. Broudo: NYLJ, 8/18/11, pg. 26, col. 1 (App. T. 2 Dept.; Steinhardt, JP, Golia, Rios, JJ

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