Tenant Can Conduct Pretrial Questioning on Rent Fraud Claim

Landlord sued to evict rent-stabilized tenant for nonpayment of rent. Tenant asked the court to dismiss the case, and landlord asked the court to strike tenant's counterclaim for rent overcharge. The court denied both requests, finding that there were questions of fact requiring a trial. Tenant claimed that, when she moved into the apartment in 2008, she was unaware that there was a DHCR rent reduction order in effect. It is undisputed that the rent reduction order was in effect from July 1, 1993, until rent was restored in February 2013. Tenant claimed that her collectible rent should have been $336 instead of $1,400. Landlord claimed that it couldn't be liable for any overcharge that occurred before it bought the building because the building was purchased in a foreclosure sale. Tenant claimed that there was a connection between landlord and prior landlord, so no foreclosure exception to rent overcharge liability should apply. Tenant also claimed fraud based on irregularities and discrepancies in the registration of apartment rents since 2007. The court granted tenant's request for pretrial questioning and document production to review the apartment rent history going back more than four years, to Sept. 1, 2007.

930-940 LLC v. Farley: Index No. 100344/2013, NYLJ No. 1202667898889 (Civ. Ct. Kings; 8/8/14; Sikowitz, J)