Landlord Can't Collect Unpaid Rent from Tenants

LVT Number: #30149

Landlord sued to evict 19 tenants for nonpayment of rent. The trial court dismissed the cases because the building lacked a valid Certificate of Occupancy (C of O) and therefore tenants had a valid defense that no rent was due. Landlord appealed and lost, then appealed again to the Appellate Division. The appeals court ruled against landlord. The trial court's ruling was supported by a fair interpretation of the evidence. Several ECB violations had been decided after a hearing determined that the building's occupancy violated the Building Code by exceeding the permitted use.

Landlord sued to evict 19 tenants for nonpayment of rent. The trial court dismissed the cases because the building lacked a valid Certificate of Occupancy (C of O) and therefore tenants had a valid defense that no rent was due. Landlord appealed and lost, then appealed again to the Appellate Division. The appeals court ruled against landlord. The trial court's ruling was supported by a fair interpretation of the evidence. Several ECB violations had been decided after a hearing determined that the building's occupancy violated the Building Code by exceeding the permitted use. Also, tenants' expert credibly testified that there were significant fire safety concerns at the building. Landlord admitted that only the A and B line apartments had access to two independent exits and that DOB only lifted its vacate order as to one of the apartments on condition that fire guards stand vigil against fire at the building. 

GVS Properties LLC v. Vargas: Index No. 9237, 2019 NY Slip Op 03549 (App. Div. 1 Dept.; 5/7/19; Renwick, JP, Richter, Tom, Kapnick, Kern, JJ)