Super Resumed Rent-Stabilized Status When Employment Ended

Landlord sued to evict building super and his family in 2008 after the super's employment was terminated. Landlord claimed that the apartment was exempt from rent stabilization because the super lived there without paying rent. The super claimed that his family had been rent-stabilized tenants of the apartment before he became super and therefore they reverted to that status when his employment ended. Landlord and the super signed a settlement agreement in court by which landlord gave the family a lease at a negotiated first rent of $1,200. The rent had been $240 per month before the super became an employee and paid no rent. In 2011, landlord sued to evict the tenant family for nonpayment of rent. Landlord asked the court to rule in its favor without a trial, claiming that tenants owed $40,000. The court ruled against landlord, finding there were questions of fact about the lease.

Landlord appealed and lost. Landlord failed to allege or prove that the super's family had agreed to surrender their rent-stabilized status. The super's wife lived in the apartment as a rent-stabilized tenant before the super became landlord's employee. Therefore, she was entitled to re-establish her rent-stabilized status when the super's employment ended. The lower court properly vacated the prior settlement agreement.

329 Union Building Corp. v. LoGuidice: Index No. 2013-840KC, NYLJ No. 1202717366576 (App. T. 2 Dept.; 1/15/15; Pesce, PJ, Aliotta, Solomon, JJ)