Tenants Seek to Opt Out of Settlement of Class Action Based on RPTL 421-g Claims

Tenants sued landlord, seeking a declaratory judgment and injunctive relief under Real Property Tax Law (RPTL) Section 421-g(6). These current and former tenants of landlord's building were members of a putative class that already sued landlord in a prior action concerning their rights under the Rent Stabilization Law and 421-g tax program. Landlord asked the court to dismiss the new case because the first case was still pending. Tenants, in turn, asked the court to simply stay the new case.

The court agreed with tenants in June 2021 and stayed the new court action. In April 2022, landlord renewed its request to dismiss the new case, and tenants renewed their request for a stay.

The court ruled against both sides, finding that the stay previously issued by the court in 2021 remained in effect. Landlord claimed that a final order and judgment had been entered approving a settlement in the initial class action, which included a broad release of all claims class members may have against landlord. Landlord argued that the tenants suing here hadn't opted out of the settlement. Tenants argued that they had moved in the prior case for an order to exclude them from the class action settlement.

But the court pointed out that neither side had made a motion to vacate or modify the stay issued in 2021. So, that stay remained in effect. The parties must wait until an order was issued in the prior case concerning whether tenants remained deemed part of the class in the prior case before proceeding in this case.

Legrand v. 67 Wall St. Owner, LLC: Index No. 162102/2019, 2022 NY Slip Op 31461(U)(Sup. Ct. NY; 5/3/22; Kraus, J)