Landlord Proved 2015 Vacancy Deregulation Through IAIs

Tenant sued landlord, claiming rent overcharge and improper deregulation of his apartment. Landlord asked the court to dismiss the case without trial. Tenant argued that issues of fact precluded any summary judgment and that landlord's request was premature.

The court ruled for landlord and dismissed the case. Landlord admitted that it didn't have records relating to individual apartment improvements (IAIs) done in 2006, which were the basis for the vacancy deregulation of the apartment. So landlord couldn't rely on the 2006 IAIs to prove deregulation. However, landlord had records proving that additional IAIs were performed in the apartment in 2015 and cost $70,490. These IAIs were significant enough that the apartment would have been removed from rent stabilization at this point, even if there was no proof to support deregulation based on the 2006 IAIs.

Tenant claimed that additional pre-trial questioning was needed, but the court disagreed. The mere hope that discovery would uncover evidence was insufficient to support a claim that landlord's motion was premature. Tenant presented no reason to question whether the 2015 IAIs actually took place. Tenant also failed to plead claims of fraud with "sufficient particularity" to extend the lookback period beyond four years. The court found that the apartment was legally vacancy-deregulated in 2015 and dismissed tenant's complaint. 

Segall v. 290 W12 LLC: Index No. 155879/2020, 2022 NY Slip Op 30165(U)(Sup. Ct. NY; 1/20/22; Nervo, J)