Tenant Organizers Didn't Prevent Mortgage Refinancing

Landlords of five buildings on a Bronx block sued tenant advocate organization. Landlords claimed that the group interfered with landlord's ability to get mortgage refinancing for the buildings from WAMU Bank by picketing, circulating fliers, and contacts with the bank. Landlord claimed damages of $1.8 million. Landlords said that the bank withdrew a letter of intent to refinance the mortgages as a result of the group's activities. Tenants asked the court to dismiss the case without a trial. They said that they sought only enforcement provisions of landlords' current mortgages to keep the buildings in good repair. The court ruled for tenants and dismissed the landlords' claims. The City's Civil Rights Law protects free speech by tenants. And a bank official testified in pretrial questioning that the bank hadn't given landlords a letter of intent but had merely invited them to refinance. In addition, the bank said that the mortgages weren't refinanced, because landlord didn't want to meet a condition set by the bank that they remedy violations on some of the buildings. The tenant organization's counterclaims for violation of the freedom of speech provisions of the Civil Rights Law could still be pursued.

New Line Realty V Corp. v. United Committees of University Heights: NYLJ, 7/28/08, p. 19, col. 1 (Sup. Ct. Bronx; Manzanet-Daniels, J)