Illusory Prime Tenant

January 1, 1998

LVT Number: 12052

Landlord sued to evict rent-controlled tenant for illegal subletting. Subtenant claimed tenant was an illusory prime tenant. After the trial, the court ruled for subtenant and dismissed the case. Landlord appealed. The appeals court ruled against landlord. Rent-controlled tenant had moved into the apartment in 1963 and moved to California in 1974. He rented to prior subtenant for 14 years and to current subtenant since 1990. Tenant also overcharged subtenant by $300 per month.

Landlord sued to evict rent-controlled tenant for illegal subletting. Subtenant claimed tenant was an illusory prime tenant. After the trial, the court ruled for subtenant and dismissed the case. Landlord appealed. The appeals court ruled against landlord. Rent-controlled tenant had moved into the apartment in 1963 and moved to California in 1974. He rented to prior subtenant for 14 years and to current subtenant since 1990. Tenant also overcharged subtenant by $300 per month. Although landlord didn't profit from tenant's actions or collude with tenant, rent-controlled tenant was still illusory tenant and subtenant could be made prime tenant. Landlord knew or should have known that subtenant was living in tenant's apartment.

Primrose Mgmt. Co. v. Donahoe: NYLJ, p. 25, col. 2 (12/1/97) (App. T. 1 Dept.; Ostrau, PJ, McCooe, Freedman, JJ)

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