No Illusory Tenancy Found in Connection with Tenant's Illegal Sublet

Landlord sued to evict tenant and subtenant for tenant’s illegal subletting. The subtenant claimed illusory tenancy. The court ruled for landlord, finding that tenant and subtenant participated in a scheme to hide the sublet from landlord. Tenant and subtenant appealed and lost. They had claimed that subtenant was tenant’s roommate, which caused landlord to settle a prior illegal sublet case against tenant. Neither of them informed landlord that tenant moved out. Also, rent was paid from a joint account bearing both tenant’s and subtenant’s names, although the account was funded and used primarily by subtenant. Tenant also continued to sign renewal leases for the apartment. Evidence supported the court’s finding that landlord didn’t have actual or constructive knowledge of the sublet, and tenant didn’t engage in profiteering. 

68-74 Thompson Realty LLC v. Heard: 54 Misc.3d 144(A), 2017 NY Slip Op 50238(U) (App. T. 1 Dept.; 2/23/1; Lowe III, PJ, Shoenfeld, Gonzalez, JJ)