Landlord Can Seek Rescission of Rent-Stabilized Lease

Tenant sued landlord, claiming that his apartment was rent stabilized. Landlord had rented it to tenant as an unregulated unit. The court ruled for tenant. Landlord then asked the court for permission to amend its answer to add a claim for rescission. Tenant argued that a rent-stabilized lease wasn't subject to rescission and that landlord couldn't add this claim since the court had already decided that he was rent stabilized. The court ruled for landlord. When tenant rented the large apartment, he told landlord he earned $170,000 per year, that his fiancee was moving into the apartment with him, and that they planned to have a large family. But tenant lied about his employment and fiancee. He was unemployed, used the apartment as a bed and breakfast, and rented rooms at excessive rents. There was no final decision in the case yet, and if landlord proved that it relied on tenant's fraudulent representations, it could have grounds to rescind the lease.

Garcia v. D. Camilleri, LLC: 2012 NY Slip Op 50535(U), 2012 WL 987611 (Sup. Ct. NY; 3/23/12; York, J)