Part Owner Claims to Be Tenant

LVT Number: 9782

Landlord, a credit corporation foreclosing on a building, sued to evict occupant who claimed to be rent-stabilized tenant. Landlord claimed occupant wasn't a tenant. The trial court ruled against landlord and landlord appealed. The appeals court reversed and ruled for landlord. Occupant was a primary principal of the building owner being foreclosed upon. He was also a limited guarantor of its obligations. Therefore, he couldn't establish a landlord-tenant relationship and be subject to rent stabilization as a tenant.

Landlord, a credit corporation foreclosing on a building, sued to evict occupant who claimed to be rent-stabilized tenant. Landlord claimed occupant wasn't a tenant. The trial court ruled against landlord and landlord appealed. The appeals court reversed and ruled for landlord. Occupant was a primary principal of the building owner being foreclosed upon. He was also a limited guarantor of its obligations. Therefore, he couldn't establish a landlord-tenant relationship and be subject to rent stabilization as a tenant. There was no lease, he made no rent payments during the last three years, and he maintained the two apartments in question for the purpose of conducting his business. He didn't use the apartments as his primary residence.

Friesche-Groningsche Hypotheekbank Realty Credit Corp. v. Slabakis: NYLJ, p. 28, col. 5 (5/8/95) (App. Div. 1 Dept.; Wallach, JP, Asch, Nardelli, Mazarelli, JJ)