Tenant Gets Attorney's Fees After Landlord Withheld Sublet Consent in Bad Faith

Landlord sued to evict rent-stabilized tenant for illegal subletting. The court ruled against landlord, finding that tenant complied with Real Property Law (RPL) Section 226-b(2) by requesting to sublet her apartment, and landlord unreasonably withheld consent in bad faith. Landlord didn't appeal the court's decision. Tenant then requested attorney's fees, but the court denied that request.

Tenant appealed and won. The lower courts denied the attorney's fees because there was no lease provision that provided for attorney's fees. But RPL Section 226-b(2) expressly provided that, if a landlord unreasonably withheld consent to a tenant's request to sublet, tenant could recover costs of an ensuing eviction proceeding and attorney's fees if the landlord acted in bad faith by withholding the consent. The appeals court sent the case back to the lower court for a ruling on the amount of reasonable attorney's fees.

Goldman v. Wendell: Index No. 570139/21, 2021 NY Slip Op 51015(U), NYLJ No. 1637083740 (App. T. 1 Dept.; 11/1/21; Edmead, PJ, McShan, Hagler, JJ)