Notice to Cure Not Required Where Tenant Overcharged Subtenants

(Decision submitted by David M. Berger of the Brooklyn law firm of Tenenbaum & Berger LLP, attorneys for the landlord.) Landlord sued to evict rent-stabilized tenant for profiteering, in violation of Rent Stabilization Code Section 2525.6(b). Landlord claimed that tenant overcharged subtenants. The court ruled for landlord. Tenant appealed, claiming that the overcharge wasn't substantial, and that landlord didn't send her a notice to cure before starting the court case. The appeals court ruled against tenant. Tenant's rent was $492 per month. She charged her subtenants much more than that. This conduct wasn't subject to a post-judgment cure. Landlord is required to send tenant a notice to cure if it claims that tenant has defaulted under her lease. But landlord's case was based on a Rent Stabilization Code violation, not a lease violation. So no cure notice was needed.

643 Realty LLC v. Thadal: NYLJ, 4/18/07, p. 30, col. 2 (App. T. 2 Dept.; Pesce, PJ, Golia, Rios, JJ)