Landlord Must Give Tenant-Hospital's Subtenants Renewal Leases

Facts: Landlord sued tenant hospital, claiming that law requiring landlord to provide rent-stabilized renewal leases to hospital based on primary residence of hospital's employee-subtenants, rather than on primary residence status of hospital, was unconstitutional. The Court of Appeals ruled for landlord in 1994 and sent the case back for further proceedings. Tenant then asked the lower court to rule that although tenant hospital wasn't entitled to renewal leases, its employees were. Court: Tenant wins. Granting renewal leases to subtenant-employees who are occupying the apartments gives individual occupants the benefits of rent stabilization without extending such protection to the hospital without limit. This result didn't violate the Court of Appeals ruling, since the issue wasn't specifically decided there.

Manocherian v. Lenox Hill Hospital: NYLJ, p. 32, col. 1 (3/29/96) (Sup. Ct. NY; Schackman, J)