Subtenants May Have Right to Remain in Apartment

December 1, 1997

LVT Number: 11979

During the course of a foreclosure case, a court-appointed receiver sued to evict unit occupants. The occupants claimed they were subtenants of rent-stabilized tenants and that they had the right to remain. The receiver asked the court to rule in his favor without a trial. The court ruled against the receiver. The occupants showed that they were subtenants under unwritten sublet agreements. And there was a possibility that, under the Loft Law, the loft building would be subject to rent stabilization as an interim multiple dwelling.

During the course of a foreclosure case, a court-appointed receiver sued to evict unit occupants. The occupants claimed they were subtenants of rent-stabilized tenants and that they had the right to remain. The receiver asked the court to rule in his favor without a trial. The court ruled against the receiver. The occupants showed that they were subtenants under unwritten sublet agreements. And there was a possibility that, under the Loft Law, the loft building would be subject to rent stabilization as an interim multiple dwelling. If so, there could be a further finding that tenant was illusory and that subtenants could be rent-stabilized tenants. A trial was needed to determine the facts.

NLI/Lutz, LLC v. NLI/Lutz, LLC: NYLJ, p. 26, col. 2 (11/12/97) (Sup. Ct. NY; Saxe, J)

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