Landlord Can't Deem Renewal Lease for Holdover Tenant

Rent-stabilized tenant's initial lease ran for one year, expiring on April 30, 2004. Landlord offered tenant a timely renewal lease, which tenant failed to sign. Tenant then remained in the apartment until Oct. 6, 2004, and paid the rent increase cited in the renewal offer. After tenant moved out, landlord sued tenant for the remainder of the rent due under a deemed one-year lease that landlord claimed started on May 1, 2004. The court ruled for landlord.
Tenant appealed and won. The next appellate court gave landlord permission to appeal and again denied any judgment for rent to landlord. Real Property Law (RPL) Section 232-c states that landlord has the option of treating tenant as a month-to-month tenant after a lease expires. The statute abolished an earlier common law rule that a holdover tenant could be held as a tenant for a new term. While Rent Stabilization Code Section 2523.5(c)(2) permits landlords to deem a renewal lease when tenant fails to sign the renewal, it's invalid to the extent that it impairs a right granted to tenants by RPL Section 232-c. Landlord then asked the appeals court for permission to reargue its appeal or, alternatively, for permission to appeal to New York's highest court. RSA and CHIP, two landlord advocacy organizations, also filed separate motions in support of landlord's position. The appeals court again ruled against landlord. Landlord can't deem the prior lease renewed solely by virtue of the fact that tenant remained in the apartment after the expiration of the lease.

Samson Management LLC v. Hubert: NYLJ, 5/21/12, p. 22, col. 4 (App. Div. 2 Dept.; Dillon, JP, Florio, Austin, Roman, JJ)