Rent stabilization -- Waiver of RSL provisions void -- Stipulation fixing illegal rent for nonprimary resident voided --

The Court of Appeals affirms the First Department's holding "that an agreement by tenants to pay an illegal rent for a rent-stabilized apartment, in exchange for an agreement by the landlord to let the tenants use the apartment as a second home, is void and cannot be enforced by either party," but opens the door to claims by the tenant to recover rent overcharges and revoke the apartment's deregulation.

 

Note that the opinion refers to a potential statute of limitations defense only with respect to an overcharge claim, suggesting approval of the line of cases holding that the "four year rule" does not protect an improper deregulation from being challenged. By emphasizing that neither the landlord nor the tenants can rely on the invalid agreement, the Court leaves open the possibility that an overcharge claim here would merit treatment along the lines of Thornton, with the base date rent set pursuant to DHCR's default formula.

Non-primary residence -- Temporary absence -- Tenant's temporary relocation to care for ailing parents held not to mandate finding of nonprimary residence.

Personal jurisdiction -- Substituted service -- "Person of suitable age and discretion" must not have conflict with party to be served -- Father-in-law's conflict of interest with respondent made him not a person of suitable discretion to recieve petition on respondent's behalf for purposes of RPAPL 735 (1).

Post-eviction relief -- Restoration -- Good cause, conditions -- Where OTDA failed to timely comply with Supreme Court's order in Jiggetts to authorize payment of all arrears in tenant's rent and ongoing rent, prior to expiration of stay of eviction, Appellate Term, granting tenant's motion for summary reversal, holds that tenant's default should be excused on condition landlord be made whole by payment of all rent arrears as well as marshal and legal fees.

RPAPL § 713 -- Notice to quit -- Notice titled "10 Day Notice to Vacate" not rendered defective because of petitioner's failure to specify date by which to vacate.

Rent stabilization -- Rent overcharge -- Four-year rule -- Where comparison of 1999 and 2001 apartment registration indicated 250% rent increase after vacancy, DHCR's denial of overcharge complaint filed in July 2005 was arbitrary and capricious in that it failed to consider claim that 2001 registration statement was unreliable; matter remanded to DHCR for reconsideration.

Rent regulation -- Reduction of services -- DHCR properly diverged from agency precedent in no longer relying solely on New York City Department of Buildings inspectors to inspect elevator service complaints, due to depletion of DOB inspector ranks following a corruption probe.

Public assistance -- Adequacy of shelter allowances -- Court denies injunction requiring OTDA to promulgate higher shelter allowance schedule for New York City recipients of Family Assistance; holds that 2003 shelter allowance regulation (18 NYCRR § 352.3) complies with Social Services Law § 350 and court's 1997 judgment; injunctions dissolved.

Rent control -- Rent increases -- Service of Form RN-26 -- DHCR properly set aside rent increases where landlord served RN-26 forms addressed to deceased former tenant rather than successor wife.

Rent control -- Reduction in services -- Rent increase granted by DHCR for "equitable reasons" set aside where previously determined reduction in services (irregular hot water) remained uncured.

Rent stabilization -- High-rent, high-income decontrol -- Default -- Tenant's default in answering petition for high-rent, high-income decontrol excused, matter remanded to DHCR for determination on merits.

Trespass on leased premises -- Injunctive relief -- Tenant granted preliminary injunction against landlord's encroachment on garden, based on prior DHCR determinations that held garden was part of leased premises.

Unlawful eviction -- Damages -- Intentional infliction of emotional distress, punitive damages -- Claim for intentional infliction of emotional distress by wrongfully evicted tenant survives summary judgment motion, where nearly all of tenant's belongings were destroyed or lost, raising inference of severe emotional distress; punitive damages denied absent proof of employer's knowing participation in or ratification of superintendent's conduct.

Illegal trade or manufacture -- Criminal activity -- Requisites for eviction -- Single incident of tenant's boyfriend criminally possessing handgun in the building and apartment along with small amount of drugs on his person, while tenant was not home, held insufficient to establish illegal use of apartment warranting eviction.

Restoration of proceeding stricken from calendar -- 22 NYCRR § 208.14 (c) -- Motion to restore denied as it was not supported by an affidavit sufficiently establishing a reasonable excuse for petitioner's delay, lack of intent to abandon the proceeding and an absence of prejudice to the respondent.

Non-primary residence -- Combined apartments -- Tenant held to have used combined rent-controlled apartments as a single primary residence.

Attorney's fees -- Allegation in petition that lease includes attorney's fees provision not a judicial admission if made upon information and belief.

Subletting -- Failure to comply with statutory requirements renders subletting illegal; illegal subletting held not subject to waiver; tenant liable for rent due until end of lease.
 
Lease provisions -- "Public Taking" clause -- Sealing of apartment by District Attorney's office does not constitute acquisition triggering condemnation clause in lease. 

Guarantors -- Revocation of guaranty -- Guarantor demonstrated disputed issue of fact, defeating summary judgment, by alleging oral revocation of guaranty directed to real estate broker who arranged lease as landlord's agent.

Summary proceedings -- Pleading requirements -- Description of premises -- Petition dismissed where description of premises is vague as to exact location of premises to be recovered; description must be specific enough for marshal to locate premises.

Summary proceedings -- Predicate notices -- Service and contents -- Notice to cure not served by "overnight mail" when served by Express Mail (??); notice to cure vague and ambiguous; notice of termination insufficient as it merely refers back to notice to cure.

 

Summary proceedings -- Family, lovers, and ex-lovers -- In licensee holdover proceeding brough by co-op shareholder to evict his "former paramour," court denies dismissal as to ex-lover but dismisses petition as to the parties' minor son; stating that stay may be available after trial pending Family Court's resolution of custody and support issues.

 

Owner's personal use -- 30 day termination notice not required; incorrect lease expiration date in notice of non-renewal not a fatal defect; notice of non-renewal states sufficient facts.

Month to month tenancies -- Nonpayment proceedings -- Nonpayment petition dismissed where landlord failed to show any proof that there was ever an implied agreement by month-to-month tenant to pay higher rent demanded by landlord.

Holdover proceedings -- Breach of lease -- Waiver -- Predecessor landlord's waiver of no-pet provision of lease binds successor, barring action to enforce provision against existing tenant; requirement that landlord obtain HUD approval of changes to terms and conditions of lease agreement does not preclude tenant's waiver defense.

Summary proceedings -- Pleadings -- Verification -- Failure to have the petition in a summary proceeding verified at all held to be a jurisdictional defect requiring dismissal.

Section 8 -- Nonpayment proceedings -- Landlord cannot, absent agreement by tenant, recover Section 8 portion of rent from tenant whose subsidy was terminated, even if the pleading incorporates money owed for the tenant's portion of rent; nor is this an affirmative defense to be pleaded and proved by the tenant.

Holdover proceedings -- Predicate notices -- Acceptance of rent -- Notice of termination not vitiated where landlord received Section 8 rental payments in a bulk payment covering many of its apartments and returned respondent tenant's share, covering post-termination rent, within 14 days.

HUD-owned housing -- Due process requirements -- Residents in government-owned buildings may not be evicted without a statement of reasons or an opportunity to challenge the action; HUD regulation denying this right to tenants in government-owned buildings designated for "substantial rehabilitation" (24 CFR § 247.10) held unconstitutional.