Tenant Can Conduct Discovery Concerning IAIs with Counterclaim

Landlord sued to evict rent-stabilized tenant for nonpayment of rent. Tenant's monthly rent was $2,367, and tenant owed over $17,000 in back rent. Tenant claimed rent overcharge and asked the court for permission to conduct pre-trial questioning and document production from landlord concerning claimed individual apartment improvements (IAIs) made in 2014 while the unit was vacant. Tenant also claimed that there was proof of a fraudulent scheme to deregulate the apartment. The court ruled for tenant, finding that tenant showed "ample need" for discovery relating to the overcharge claim. And, based on review of DHCR rent registration filings, the court found that the IAIs landlord claimed to have performed in 2014 must be deemed to fall within the four-year lookback period. So there was no need to perform a fraud analysis.

Loran LP v. Cruz: Index No. 21642/19, NYLJ No. 1608612314 (Civ. Ct. Bronx; 10/19/20; Lutwak, J)