Landlord Didn't Prove Cost of IAIs Resulted in Deregulation

Tenant sued landlord and prior landlord, claiming rent overcharge and improper deregulation of her apartment. The trial court ruled for tenant, finding that the proven cost of individual apartment improvements (IAIs) was insufficient to remove the unit from rent stabilization.

Landlord appealed and won. The appeals court found that landlords had presented sufficient proof of IAI costs that supported vacancy deregulation of the apartment before tenant moved in. Two of the five judges on the Appellate Division panel disagreed.

Tenant then appealed, and New York's highest court reversed. Tenant argued that landlords failed to prove that IAIs made to her apartment immediately prior to her tenancy satisfied the useful life requirement set forth in Rent Stabilization Code Section 2522.4(a)(11) and Rent Stabilization Law Section 26-511(c)(13). Although the appeals court had made new findings of fact, the Court of Appeals found that the trial court's findings fit more squarely with the weight of the evidence. The case was sent back to the Appellate Division for consideration of issues raised but not determined on the appeal to that court.

DiLorenzo v. Windermere Owners LLC: Case No. 78, 2020 NY Slip Op 06837, NYLJ,11/20/20, p.19, col. 5 (Ct. App.; 11/19/20; DiFiore, CJ, Rivera, Stein, Fahey, Garcia, Wilson, Feinman, JJ)