Subtenant Didn't Prove Illusory Tenancy and Isn't Rent Stabilized

Landlord sued to evict rent-stabilized tenant for unauthorized subletting. The court ruled for landlord. Subtenant appealed and lost. Subtenant claimed illusory prime tenancy and that, therefore, he should get a rent-stabilized lease. But subtenant never represented himself as anything other than tenant's roommate. Neither tenant nor subtenant ever notified landlord that tenant had moved out of the apartment, and the rent was continuously paid by check from an account bearing tenant's name. Trial evidence also showed that landlord didn't have actual or constructive knowledge of tenant's arrangement with subtenant. And landlord received no benefit from tenant's conduct. Tenant also engaged in profiteering but had refunded overcharges to subtenant.

388 Broadway Owners, LLC v. Salaway: 60 Misc.3d 132(A), 2018 NY Slip Op 51010(U) (App. T. 1 Dept.; 6/28/18; Shulman, PJ, Gonzalez, Cooper, JJ)