Loft Board Can Approve Tenant's Sale of Fixtures

Facts: Loft tenant asked the Loft Board, in July 1993, to approve her sale of the loft's fixtures to a subtenant when she moved out. Landlord had 20 days to challenge the sale, but didn't do so. Tenant then found out that the city had taken over the building in a foreclosure action in January 1993. Due to the city takeover, the Loft Board decided the building wasn't covered under Loft Law. So it couldn't approve tenant's sale of fixtures. Tenant appealed, asking the court to let her fixture sale go through. She also argued that landlord had given up its right to challenge the sale. Court: Tenant wins. The court sent the case back to the Loft Board to approve the sale of fixtures. Even though the city owned the building, landlord was in the process of regaining ownership when tenant asked for the Loft Board's approval. Also, at that time, landlord had complete control of the building---it collected rent and had filed nonpayment cases against other tenants. And even if landlord thought the city was ''landlord'' for purposes of the fixture sale, it could have asked the city to challenge the sale on its behalf during the 20-day period. Since landlord didn't challenge the sale, it should go forward.

Penberthy v. N.Y. City Loft Board: NYLJ, p. 25, col. 5 (7/19/94) (App. T. 1 Dept.; Greenfield, J)