Tenant Can Raise Rent Fraud Claim in Response to Nonpayment Petition

Landlord sued to evict rent-stabilized tenant for nonpayment of rent. At some point after initially answering the petition, tenant retained an attorney, who amended tenant's answer. The attorney later asked for permission to amend tenant's answer for a second time to include a defense and counterclaim based on fraudulent rent overcharge and triple damages. Tenant also now wanted to include claims based on defective rent demand and defective petition, alleged violation of the Tenant Safe Harbor Act, violation of RPL Section 235-e(d), the warranty of habitability, and attorney's fees. Landlord opposed tenant's request. 

The court ruled for tenant. Tenant showed there were indicia of fraud that supported permitting amendment of tenant's answer. Among other things, there was a 111.5 percent increase in rent between 2005 and 2006. This did not mean that fraud had been proven at this point. 

3612 Broadway Partners LLC v. Mejia: Index No. LT308485/21, 2023 NY Slip Op 23078 (Civ. Ct. NY; 3/27/23; Bacdayan, J)