Tenants Claiming Overcharge Granted Class Action Status

LVT Number: #30634

Current and former building tenants sued landlord, claiming rent overcharge and improper deregulation of apartments while landlord received J-51 tax benefits for the building. Tenants asked the court to certify the case as a class action. Current tenants also asked the court for injunctive relief in the form of rent-stabilized leases with correct, legal regulated rents. Landlord, in turn, asked the court to dismiss the case.

Current and former building tenants sued landlord, claiming rent overcharge and improper deregulation of apartments while landlord received J-51 tax benefits for the building. Tenants asked the court to certify the case as a class action. Current tenants also asked the court for injunctive relief in the form of rent-stabilized leases with correct, legal regulated rents. Landlord, in turn, asked the court to dismiss the case.

The court ruled for tenants. Tenants showed that there were at least 40 members of the proposed class, and courts have granted class action status where there were as few as 18 members. A common question of whether the default formula should apply to tenants to determine rent overcharges also was involved. And tenants' claims were typical of the claims of the persons in the proposed class definition. Tenants also sufficiently demonstrated that they will fairly and adequately protect the interests of the class. Certifying the group of tenants as a class, rather than deciding the claims individually, would also preserve judicial resources.

Woodson v. Convent 1 LLC: Index No. 160547/2017, 2020 NY Slip Op 30061(U) (Sup. Ct. NY; 1/6/20; Tisch, J)