Nonrenewal Notice Required for Fraud Claim Based on Nonprimary Residence

Facts: Landlord was holder of unsold shares of cooperative apartment. Tenant was nonpurchasing, rent-stabilized tenant. Landlord didn't send tenant a renewal lease or nonrenewal notice during the 150–90-day window period before the lease ended. Landlord later renewed tenant's lease and then sued tenant, claiming fraud. Landlord claimed that tenant didn't advise landlord that the apartment wasn't her primary residence. Landlord sought money damages from tenant for the fair market value of the apartment, reflecting punitive damages and additional rent that landlord could have obtained during the renewal lease term. Tenant asked the court to dismiss the case without a trial, arguing that landlord had no valid claim. Court: Tenant wins. Since landlord didn't send a nonrenewal notice during the window period, the court couldn't consider the nonprimary residence claim during tenant's renewal lease period. And, even if the court could consider landlord's claim, there was insufficient proof of fraud. Whether the apartment was tenant's primary residence is a legal conclusion, so tenant's statement that the apartment was her primary residence was a matter of interpretation. And landlord couldn't justifiably rely on tenant's statement to claim fraud. Landlord also didn't claim that tenant made this statement prior to the window period, when tenant's right to a renewal lease became absolute. And tenant had no fiduciary relationship with landlord.

200 E. 27th LLC v. Schiffmiller-Nachshen: NYLJ, 5/11/05, p. 21, col. 1 (Sup. Ct. NY; Lehner, J)