Tenants' Claim of Improper Deregulation Dismissed

January 27, 2025

LVT Number: #33534

Former and current tenants of five buildings sued landlords, claiming that the current and prior landlords engaged in a scheme designed to evade New York's rent regulations. The court granted landlord's request to dismiss the case. The pre-war buildings weren't eligible for the 421-a tax benefit program, so therefore couldn't have violated that program. Tenants also failed to state a claim of fraudulent deregulation. Their claims were conclusory and there was no claim that any of the landlords involved even knew each other.

Former and current tenants of five buildings sued landlords, claiming that the current and prior landlords engaged in a scheme designed to evade New York's rent regulations. The court granted landlord's request to dismiss the case. The pre-war buildings weren't eligible for the 421-a tax benefit program, so therefore couldn't have violated that program. Tenants also failed to state a claim of fraudulent deregulation. Their claims were conclusory and there was no claim that any of the landlords involved even knew each other. "Speculation of fraud will not suffice to expand the lookback period or invoke the default formula. All elements of fraud must be established." 

Cox v. 36 S Oxford St, LLC: Index No. 158487/2023, 2024 NY Slip Op 34257(U), NYLJ No. 173333942 (Sup. Ct. NY; 11/27/24; Frank, J)

Topics

More like this