No Fees to Landlord for Eviction Case

June 30, 2004

LVT Number: 17395

Landlord sued to evict rent-stabilized loft tenant for profiteering because tenant charged his roommate more than 50 percent of the total rent. Tenant asked the court to dismiss the case. The court ruled for tenant on the condition that he refund to roommate any rent paid in excess of roommate's 50 percent share. Landlord asked the court for attorney's fees. The court ruled for landlord. Tenant appealed and won. Although tenant violated Rent Stabilization Code Section 2525.7 by overcharging the roommate, the amount was small, and there was no proof of bad faith or intent to profiteer.

Landlord sued to evict rent-stabilized loft tenant for profiteering because tenant charged his roommate more than 50 percent of the total rent. Tenant asked the court to dismiss the case. The court ruled for tenant on the condition that he refund to roommate any rent paid in excess of roommate's 50 percent share. Landlord asked the court for attorney's fees. The court ruled for landlord. Tenant appealed and won. Although tenant violated Rent Stabilization Code Section 2525.7 by overcharging the roommate, the amount was small, and there was no proof of bad faith or intent to profiteer. Tenant reasonably believed that he was entitled to some compensation for loft improvements he made. Since landlord didn't get an eviction, it wasn't the prevailing party and, so, wasn't entitled to attorney's fees.

54 Greene St. Realty Corp. v. Shook: NYLJ, 6/24/04, p. 26, col. 5 (App. Div. 1 Dept.; Nardelli, JP, Mazzarelli, Andrias, Gonzalez, Sweeny, JJ)

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