Loft Tenants Must Deposit Back Rent with Court

November 1, 1998

LVT Number: 12754

Landlord sued to evict tenants for nonpayment of rent, claiming that the loft unit was commercial space. Tenants showed that they lived in the loft and that landlord knew this. Tenants claimed that since their residential occupancy violated the building's certificate of occupancy, landlord couldn't collect rent. The court ruled against tenants. Landlord and tenants both knew from the outset that tenants' occupancy was illegal. Tenants shouldn't get a windfall. The court awarded possession to landlord unless tenants paid $52,000 in back rent.

Landlord sued to evict tenants for nonpayment of rent, claiming that the loft unit was commercial space. Tenants showed that they lived in the loft and that landlord knew this. Tenants claimed that since their residential occupancy violated the building's certificate of occupancy, landlord couldn't collect rent. The court ruled against tenants. Landlord and tenants both knew from the outset that tenants' occupancy was illegal. Tenants shouldn't get a windfall. The court awarded possession to landlord unless tenants paid $52,000 in back rent. But the court delayed issuance of the eviction warrant until landlord got a proper C of O for the building. In the meantime, tenants were ordered to deposit back rent and future monthly rent with the court.

Cha Kai Brothers, Inc. v. Nicholas G. Yeager, Inc.: NYLJ, p. 28, col. 5 (10/21/98) (Civ. Ct. NY; James, J)

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