J-51 Tenant Gets Attorney's Fees

Facts: Tenant moved into an apartment in a J-51 building in 2005. Tenant’s one-year lease stated that the unit was no longer rent stabilized. Tenant’s lease was renewed once at $1,975 per month, but when landlord offered a second renewal at $3,100 per month, tenant complained to the DHCR of a rent overcharge. The DHCR ruled against tenant, finding that the rent was properly deregulated after adding 1/40^th rent increases before tenant moved in. Tenant appealed, and the DHCR took the case back for reconsideration in light of the interim appellate order in the Roberts case. In the meantime, landlord sued to evict tenant, but that case was stayed pending the outcome of the DHCR proceeding. Landlord later agreed to give tenant a rent-stabilized lease. Tenant then asked the court to restore the eviction case to the calendar and grant her attorney’s fees. Landlord argued that it would be unfair to give tenant attorney's fees since landlord was following the law before it was changed by the Roberts case decision.

Court: Landlord loses. Tenant’s lease provides that tenant is entitled to attorney’s fees for a “successful defense.” It didn’t matter if the law had changed. In any event, Roberts didn’t change the law; it simply interpreted the existing law. Tenant obtained the central relief sought in the case, which was a rent-stabilized renewal lease. So tenant was entitled to attorney’s fees.

NYC 107 LLC v. Clark: NYLJ, 5/20/10, p. 26, col. 1 (Civ. Ct. NY; Scheckowitz, J)