Tenants Must Pay Use and Occupancy While Case Pending

Loft tenant sued landlord and asked the court to declare that he was residential tenant subject to rent-stabilization coverage. Tenant claimed that he and his family lived in part of the loft. Landlord claimed that tenant was commercial, not residential, and asked the court to direct payment of use and occupancy fees and renewal of tenant’s insurance coverage while the case was pending. Tenant claimed no use and occupancy should be paid until the case was decided. The court ruled for landlord. Tenant’s lease didn’t state whether the unit was rented for commercial or residential purposes, but a lease rider made several references to the business tenant was to operate at the loft. Landlord was entitled to payment of use and occupancy while the case was pending. And tenant must renew the insurance he had purchased under the terms of the lease.

Caton v. Grand Machinery Exchange, Inc.: NYLJ, 1/29/10, p. 26, col. 1 (Sup. Ct. NY; Kenney, J)