Landlord Eliminated Tenant Parking Spaces

Rent-stabilized tenants sued landlord after landlord tried to terminate tenants' parking lease riders and eliminate or relocate their parking spaces to an underground parking garage. Tenants sought a preliminary injunction to block any changes to their ancillary parking service while their lawsuit was pending. Landlord hadn't received permission from the DHCR to modify required services. The court ruled for tenants on condition that they post a $75,000 undertaking. Tenants appealed and lost. The amount of the undertaking was rationally related to landlord's potential damages if, at the end, tenants lost the case. Before getting DHCR approval to modify services, landlord had entered into a contract to sell the open-air parking lot in question to a developer.

Peyton v. PWV Acquisition LLC: 955 NYS2d 41, 2012 NY Slip Op 08424 (App. Div. 1 Dept.; 12/6/12; Tom, JP, Mazzarelli, Moskowitz, Abdus-Salaam, Feinman, JJ)