Landlord Gets Stay of Overcharge Findings Pending Appeal of Tenants' Class Action

Tenants sued landlord in a class action, claiming rent overcharges resulting from an alleged scheme to charge market-rate rents for apartments while collecting J-51 tax benefits. Landlord denied tenants' claims and argued that its late filing of DHCR rent registrations didn't constitute rent overcharges if the registered rents were otherwise legal. The court ruled against landlord, finding that its late registrations constituted a scheme to deregulate the apartments, and appointed a referee to compute collectible rents.

Landlord filed a notice of appeal of the court's decision and requested a stay from the court's order. Landlord argued it would be a waste of resources to implement the order pending the outcome of the appeal. The court ruled for landlord, finding no prejudice to tenants, and didn't require landlord to post an undertaking at this point.

Gomes v. Vermyck LLC: Index No. 713219/18, 2022 NY Slip Op 32701(U), NYLJ No. 1659456381 (Sup. Ct. Queens; 7/1/22; Unger, J)