Tenants Can't Be Evicted for Rent Gouging

LVT Number: 11789

Facts: When he went on vacation, loft tenant sublet loft for at least three summers for rent amounts greater than the legal rent. Landlord sued to evict tenant for rent gouging. Landlord pointed out that under the Rent Stabilization Code and a number of court decisions, eviction was permitted on this basis without giving tenant the chance to cure. Court: Landlord loses. Loft board regulations don't contain the same provisions as the Rent Stabilization Code that were relied upon by courts in other cases. The loft board regulations only gave subtenants the right to sue for treble damages.

Facts: When he went on vacation, loft tenant sublet loft for at least three summers for rent amounts greater than the legal rent. Landlord sued to evict tenant for rent gouging. Landlord pointed out that under the Rent Stabilization Code and a number of court decisions, eviction was permitted on this basis without giving tenant the chance to cure. Court: Landlord loses. Loft board regulations don't contain the same provisions as the Rent Stabilization Code that were relied upon by courts in other cases. The loft board regulations only gave subtenants the right to sue for treble damages. The court pointed out that tenant had cured the sublet and stated that summer sublets didn't amount to long-term profiteering.

Ariel Assocs. LLC v. Brown: NYLJ, p. 29, col. 5 (9/18/97) (Civ. Ct. NY; Friedman, J)