Case Type

Succession

Housing Type

Rent Stabilized

Court

Appellate Division, First Department

County

New York County (Manhattan)

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

2026 NY Slip Op 04386

Slip Opinion Number

2026 NY Slip Op 04386

Petitioner

West Side Marquis LLC

Respondent

Troy Sheppard

Judge

Webber; Kennedy; Friedman; González; Shulman

Decision/Order Date

2026-07-09

Posture

Post-Answer Motion by Landlord

Disposition

Reversed for Tenant

Winner

Tenant Substantially Won

Synopsis

The Appellate Division, First Department reversed and granted summary judgment to a rent-stabilized successor tenant. Under the HSTPA, a landlord may not withdraw a previously offered preferential rent in a renewal lease. Tenant was entitled to a renewal lease at the preferential rent paid by the predecessor tenant of record. A 2006 DHCR settlement and rent order did not constitute increases 'authorized by law' under RSL §26-511(c)(14), and the DHCR order had no preclusive effect against tenant, who had not been a party to the prior proceeding and had not had a full and fair opportunity to litigate.

Keywords

Preferential Rent Cannot Be Revoked Under HSTPA; Successor Entitled To Renewal Lease; Successor Entitled To Preferential Rent

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