Illusory Prime Tenant

April 30, 2001

LVT Number: 14975

Landlord sued to evict tenant and subtenant for illegal subletting. Subtenant claimed that prime tenant was prior landlord and that this was an illusory prime tenancy. Landlord argued that there could be no illusory tenancy because there was no rent overcharge or evasion of rent stabilization. The court ruled against landlord. Profiteering was only one factor, and not a requirement, for a finding of illusory prime tenancy. Prior landlord was illusory prime tenant, and subtenant was entitled to a rent-stabilized lease in her own name.

Landlord sued to evict tenant and subtenant for illegal subletting. Subtenant claimed that prime tenant was prior landlord and that this was an illusory prime tenancy. Landlord argued that there could be no illusory tenancy because there was no rent overcharge or evasion of rent stabilization. The court ruled against landlord. Profiteering was only one factor, and not a requirement, for a finding of illusory prime tenancy. Prior landlord was illusory prime tenant, and subtenant was entitled to a rent-stabilized lease in her own name.

Caulfield v. Leung: NYLJ, 4/25/01, p. 19, col. 2 (Civ. Ct. NY; Klein, J)

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