Landlord Claims Lease Null and Void

New landlord sued rent-stabilized tenants, seeking a declaration that their lease was null and void. Prior landlord gave tenants a lease for 30 years at $600 per month and an unlimited right to sublet. The court ruled for landlord only in part. It voided the sublet provision as unlawful but didn't void the rest of the lease. Landlord had claimed that the lease wasn't recorded, but the court said a trial was required on whether landlord had notice of the lease when it bought the building. Landlord appealed and lost. Landlord can't raise for the first time on appeal a claim that the lease was fraudulent. And, since tenants claimed that they paid prior landlord $10,000 for repairs when they moved in, there was a question as to whether they paid fair consideration for the lease. This required a trial.

Gemroson Realty Corp. v. Kadarkhan: NYLJ, 11/15/01, p. 19, col. 1 (App. Div.1 Dept.; Andrias, JP, Wallach, Lerner, Saxe, Friedman, JJ)