Los Angeles, CA: A class action lawsuit alleging unfair business practices brought against apartment buildings in New York City by tenants who allege they have been overcharged, has received certification by the New York Court of Appeals.
Separate lawsuits were filed by Lorraine Borden, Yanella Gudz and Elisa Downing against 400 East 55th Street Associates LP, Jemrock Realty Company LLC and First Lenox Terrance Associates. In all three of the lawsuits, the plaintiffs are current or former tenants of separate apartment buildings in New York City who seek damages for rent overcharges.
"They allege that their units were decontrolled in contravention of RSL ยง 26-516 (a) because their landlords accept tax benefits pursuant to New York City's J-51 tax abatement program," court documents state. "To qualify for the J-51 program exemption, landlords must relinquish their rights under the decontrol provisions of the RSL while they benefit from the exemption."
The plaintiffs' claims arose out of the decision in Roberts v. Tishman Speyer Props., which held that a landlord receiving the benefit of a J-51 tax abatement may not deregulate any apartment in the building pursuant to the luxury decontrol laws.
"Prior to Roberts, the New York State Division of Housing and Community Renewal took the position that where participation in the J-51 program was not the sole reason for the rent regulated status of a building, particular apartments could be luxury decontrolled, As a consequence, many landlords decontrolled particular apartments in their buildings, charging tenants market rents, while at the same time receiving J-51 tax abatements," the majority opinion states. "In Roberts, we did not address the legitimacy of the putative class action, but we now address the issue."
The plaintiffs are represented by Christian Siebott of Bernstein Liebhard LLP in New York and Matthew D. Brinckerhoff of Emery Celli Brinckerhoff & Abady LLP in New York.
