Case Type

Non-payment

Housing Type

Rent Stabilized

Court

Supreme Court, Appellate Term, First Department

County

New York County (Manhattan)

L&T / Index / Case / Docket / Clerk's Number

570315/25

Slip Opinion Number

25260

Petitioner

167 8th Avenue LLC

Respondent

Jared Goldstein

Judge

James, P., Brigantti, A., Alpert, J.

Decision/Order Date

2025-12-02

Posture

Other

Disposition

Motion Granted for Tenant

Winner

Tenant Substantially Won

Synopsis

The Appellate Term reversed a money judgment and reinstated a tenant's rent overcharge defenses and counterclaims, remanding for reconsideration. While the appeal regarding possession was dismissed as moot due to the tenant's eviction, the monetary claims persisted. The court held that recent legislative amendments (L. 2024, Ch. 95 § 4) mandating a "totality of the circumstances" standard for fraudulent deregulation claims apply to pending cases. This new standard, more favorable to tenants, requires the lower court to determine if the landlord knowingly engaged in a fraudulent scheme to remove the apartment from rent stabilization.

Keywords

Rent Overcharge Defenses and Counterclaims Reinstated Post-eviction; Totality of the circumstances standard for fraudulent scheme to deregulate; L. 2024, Ch. 95 § 4; Appeal as to Judgment of Possession Dismissed as Moot Because Tenant was Evicted Pending Appeal

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