Case Type
Overcharge
Housing Type
Rent Stabilized
Court
Appellate Division, First Department
County
New York County (Manhattan)
L&T / Index / Case / Docket / Clerk's Number
156847/16
Slip Opinion Number
2025 NY Slip Op 04693
Petitioner
Mariana Dimitrova Alekna et al.
Respondent
207-217 West 110 Portfolio Owner LLC et al.
Judge
Webber, J.P.; Friedman, Gesmer, Rosado, Michael, JJ.
Decision/Order Date
2025-08-14
Posture
Other
Disposition
Other
Winner
Other
Synopsis
The Appellate Division, First Department, remanded this class action for trial to determine if the landlord engaged in a fraudulent scheme to deregulate apartments while receiving J-51 tax credits. The court applied the "totality of the circumstances" standard, which superseded the stricter common-law fraud standard, and held that tenants must prove the landlord "knowingly engaged" in the fraudulent scheme. The decision found no impermissible retroactive effect in applying the new standard and affirmed that managing agents can be held liable for their participation in a fraudulent scheme. The court denied the tenant's summary judgment motion and modified the lower court's decision, finding that questions of fact remained regarding the landlord's conduct.
Keywords
Rent Overcharge; J-51; Totality of Circumstances Standard Applies; Tenant Must Prove Landlord Knowingly Engaged in Fraudulent Scheme
Recommended Citation
"Alekna v. 207-217 W. 110 Portfolio Owner LLC" (2025). All Decisions. 1910.
https://ir.lawnet.fordham.edu/housing_court_all/1910
