Court Permits Pre-Trial Questioning by Tenant Claiming Fraudulent Rent Overcharge

April 25, 2025

LVT Number: #33655

Landlord sued to evict rent-stabilized tenant for nonpayment of rent. In response, tenant claimed that there was a fraudulent rent overcharge and asked the court for permission to conduct pretrial questioning. Applying the "totality of the circumstances" standard, the court found that there were sufficient indicia of fraud to warrant discovery from landlord. The court rejected landlord's argument that, since the apartment hadn't been deregulated, there could be no showing of a fraudulent scheme.

Landlord sued to evict rent-stabilized tenant for nonpayment of rent. In response, tenant claimed that there was a fraudulent rent overcharge and asked the court for permission to conduct pretrial questioning. Applying the "totality of the circumstances" standard, the court found that there were sufficient indicia of fraud to warrant discovery from landlord. The court rejected landlord's argument that, since the apartment hadn't been deregulated, there could be no showing of a fraudulent scheme. The court ruled that a fraudulent rent overcharge scheme is treated the same as a fraudulent scheme to deregulate for the purpose of going beyond the statutory lookback date.

SP 1143 Second LLC v. Pinson: Index No. L&T 323608/23, _____________ (Civ. Ct. NY; 1/21/25; Blinova, J)

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