Tenant Claims Rent Concession Was Preferential Rent

Rent-stabilized tenant sued landlord in State Supreme Court, claiming rent overcharge. Tenant proposed that the case be a class action for all building tenants, claiming that landlord collected improper rents while the building received J-51 tax benefits. Landlord asked the court to dismiss the case without trial, deny tenant's request for class certification, transfer the case to Civil Court, delay discovery, and award it attorney's fees. Tenant, in turn, asked the court to compel pre-trial questioning. The court ruled against both sides. The parties were directed to appear in court for a preliminary conference.

Among other things, the court found that tenant fit within the definition of tenants that were part of the proposed class since he moved in between Jan. 31, 2016, and the future conclusion of the court action. While landlord denied charging tenant late fees, these were listed in the tenant's rent ledger. Although landlord claimed that COVID-related rent concessions it granted weren't preferential rents, leases indicated that the dollar value of rent-free months was prorated over the entire term, which would be treated as a preferential rent. Since the overcharge amounts in question hadn't been established, it was too early to seek transfer of the case to Civil Court. It was also too early in the case to seek attorney's fees. Since there was no indication of good faith efforts between the parties' counsel to resolve discovery issues, tenant's request to compel discovery was denied.

Alsaffar v. 44 Dev. LLC: Index No. 150928/2022, 2023 NY Slip Op 33668(U)(Sup. Ct. NY; 10/20/23; Goetz, J)