Landlord Must Offer Renewal Lease to Subtenant

LVT Number: 8261

Facts: Landlord rented rent-stabilized apartment to tenant. Unknown to landlord, tenant had sublet the apartment to a series of subtenants for a number of years and overcharged them. When tenant's lease was last renewed in 1992, the stabilized rent was $300. Tenant sublet the apartment for $600. The building also, at some point, went into receivership. When landlord/ receiver discovered tenant's sublet was illegal, landlord demanded that tenant and subtenant move out. Tenant vacated the apartment, but subtenant wouldn't move out. Landlord sued to evict subtenant. Court: Landlord loses.

Facts: Landlord rented rent-stabilized apartment to tenant. Unknown to landlord, tenant had sublet the apartment to a series of subtenants for a number of years and overcharged them. When tenant's lease was last renewed in 1992, the stabilized rent was $300. Tenant sublet the apartment for $600. The building also, at some point, went into receivership. When landlord/ receiver discovered tenant's sublet was illegal, landlord demanded that tenant and subtenant move out. Tenant vacated the apartment, but subtenant wouldn't move out. Landlord sued to evict subtenant. Court: Landlord loses. Tenant was an illusory prime tenant---even though landlord wasn't involved in tenant's scheme and only one apartment was involved. In this type of situation, landlord must give subtenant a lease in his own name. Landlord was aware that subtenant lived in the building as a subtenant. Even though accepting subtenant as a tenant may affect the rights of future building owner, the receiver must act as a representative of the court.

Greer v. Erwin: NYLJ, p. 22, col. 6 (9/22/93) (Civ. Ct. NY; Ramos, J)