Tenants Seek Class Action Status for Rent Overcharge Claims

LVT Number: #31034

Sixty-one tenants in 18 different buildings sued landlords and sought class action designation. Tenants claimed that owners were single-purpose-entity LLCs, all of which shared the same individual managing member. Tenants claimed that the landlords had jointly engaged in a scheme designed to inflate rents above the amounts they were legally permitted to charge by: (a) misrepresenting the costs of individual apartment improvements (IAIs); and/or (b) deregulating apartments despite receipt of J-51 tax benefits. Landlord asked the court to dismiss the case, objecting to class certification.

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