Pretrial Questioning Permitted on Illusory Tenancy Issue

June 30, 2006

LVT Number: 19848

Landlord sued to evict subtenants of three loft units. Subtenants claimed illusory prime tenancy. Subtenants asked for permission to conduct pretrial questioning. The court ruled for subtenants. Landlord appealed and lost. Illusory tenancy can be raised as a defense, since the loft was subject to rent stabilization. And there were questions of fact that showed the need for pretrial questioning. Tenant had moved out of the lofts more than 10 years earlier and may have engaged in unlawful rent profiteering.

Landlord sued to evict subtenants of three loft units. Subtenants claimed illusory prime tenancy. Subtenants asked for permission to conduct pretrial questioning. The court ruled for subtenants. Landlord appealed and lost. Illusory tenancy can be raised as a defense, since the loft was subject to rent stabilization. And there were questions of fact that showed the need for pretrial questioning. Tenant had moved out of the lofts more than 10 years earlier and may have engaged in unlawful rent profiteering. Landlord dealt directly with subtenants during that time, billing for and collecting electricity charges from at least one subtenant and designating each subtenant as fire marshal on his or her floor.

545 Eighth Ave. Assocs. LP v. Shanaman: NYLJ, 6/9/06, p. 35, col. 1 (App. T. 1 Dept.; Davis, JP, Schoenfeld, J)

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