Tenants Can File Class Action

Deregulated tenants who moved into landlord’s 137-unit building between 2002 and 2011 sued landlord for rent overcharge and sought a ruling that they were rent stabilized. Since 1993, landlord had deregulated high-rent apartments and re-rented to new tenants even though landlord obtained J-51 tax benefits in 1991, 1996, 2000, and 2003. Tenants claimed that landlord illegally charged them market rents and that their apartments should have remained rent stabilized under J-51 and the 2009 decision of New York’s highest court in Roberts v. Tishman Speyer Properties LP. Tenants claimed that 72 apartments had been improperly deregulated, and asked the court to declare the case a class action by all current, former, and future tenants of the building whose apartments were, are, or will be deregulated while landlord received J-51 benefits. The court ruled for tenants. There were many tenants in the building subject to the same questions of law and fact. The nine proposed representatives of the class, represented by experienced attorneys, understood the issues, and were willing to represent the class.

Casey v. Whitehouse Estates, Inc.: 36 Misc.3d 1225(A), 2012 NY Slip Op 51471(U) (Sup. Ct. NY; 8/6/12; Singh, J)