Tenants Can Bring Class Action for Overcharge and Improper Deregulation

LVT Number: #24769

Tenant sued landlord for rent overcharge, claiming that landlord unlawfully deregulated apartments while receiving "J-51" tax benefits. Tenant asked the court to grant certification for a class action. The court ruled for tenant. Landlord appealed and lost. Landlord claimed that tenant sought a penalty, which Civil Practice Laws and Rules (CPLR) Section 901(b), a law governing class actions, prohibits. The court found that tenant's claim for overcharges and attorney's fees didn't constitute a claim for a penalty.

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