President Park Inc. v. Brabham

167 Misc. 2d 700, 635 N.Y.S.2d 432, 1995 N.Y. Misc. LEXIS 557
CourtCivil Court of the City of New York
DecidedNovember 6, 1995
StatusPublished

This text of 167 Misc. 2d 700 (President Park Inc. v. Brabham) is published on Counsel Stack Legal Research, covering Civil Court of the City of New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
President Park Inc. v. Brabham, 167 Misc. 2d 700, 635 N.Y.S.2d 432, 1995 N.Y. Misc. LEXIS 557 (N.Y. Super. Ct. 1995).

Opinion

[701]*701OPINION OF THE COURT

Carl O. Callender, J.

I. PROCEDURAL POSTURE

The respondent moves for a summary judgment against the petition seeking the following orders: (1) An order declaring that the respondent is a rent-controlled and not a rent-stabilized tenant; (2) A decision that because the respondent is a rent-controlled tenant the fact that the petitioner has charged her rent pursuant to rent-stabilized allowable increases has resulted in the respondent being overcharged; (3) An order determining not only that the respondent has been overcharged by the petitioner, but the overcharge was willful and therefore the respondent is entitled to treble or punitive damages.

The petitioner counters that the petitioner should be awarded a judgment for rent due based on its claim that the respondent is actually a rent-stabilized tenant as a matter of law and therefore the respondent’s motion should be denied.

II. FACTUAL AGREEMENT

The parties agree that the following information is true: (1) The respondent moved into the subject premises in 1969 and has remained there without interruption to the present; (2) At the time the respondent moved into the apartment she was protected by the rent control laws; (3) The building in question was acquired by the City of New York on July 28, 1983; (4) The building was sold by the City of New York to the petitioner in December 1986; (5) The rents charged the respondent from December 1986 to the present were based on the last rent charged by the City just before the building was sold and the lawful increases permitted for rent-stabilized apartments.

III. LEGAL CLAIMS

1. Petitioner’s Contentions

The petitioner argues that when the building was acquired by the City of New York and then sold to the petitioner, the apartment became decontrolled and rent stabilized.

A. Rent Stabilization Law

The petitioner draws our attention to section 26-507 of the Rent Stabilization Law of 1969 (Administrative Code City of NY, tit 26, ch 4 [RSL]). It argues that that provision of the law changes rent-controlled apartments to rent-stabilized dwelling [702]*702units when the City conveys the building to private ownership. That law, the petitioner states, makes the rent after the change of ownership the same as the last rent charged by the City.

B. The Lawful Rent

Further, the petitioner says that the rent actually charged from the date the petitioner purchased the premises until today is entirely consistent with the rents chargeable to rent-stabilized units.

Therefore, the petitioner seeks a judgment for all rent that remains unpaid that has been claimed by it pursuant to the charges according to the rent stabilization laws and that was requested in the petition.

2. The Respondent’s Position A. Rent Control Status Remains Unchanged

The respondent states that the rent control status of the subject premises remained unchanged and withstood the change of ownership from the City of New York to petitioner.

B. The Petitioner Made No Effort To Seek Increases From The Rent Control Agency

The respondent notes that not one of the increases claimed by the petitioner was approved by the rent control agency. She also observes that the petitioner never requested approval from the rent control agency to raise her rent.

C. The Rent Should Remain At The Same Level It Was When It Was Rent Controlled

The respondent argues that according to rent control procedures and policies the respondent’s rent remains the same as it was when the petitioner bought it from the City. Therefore any increases made by the petitioner is unlawful and constitutes an overcharge claims the respondent.

D. The Petitioner Willfully Overcharged

The respondent declares that because the petitioner refused to utilize the appropriate rent-controlled procedures, it should be found to have willfully overcharged the respondent and the respondent should be awarded treble damages.

IV. LEGAL ANALYSIS

1. Perspective Of The Parties

The focal point of attention for both parties has been section 26-507 of the Rent Stabilization Law. The petitioner claims [703]*703that the aforementioned provision takes a rent-controlled apartment and makes it a rent-stabilized apartment whenever it becomes acquired by the City and is then sold to a private owner. This court notes that no rent control law has been offered to predicate the petitioner’s contentions. Rather concentration has been generated and stayed on the Rent Stabilization Law and the legislative history thereunder.

The respondent claims that all references to section 26-507 are irrelevant and inappropriate. The contentions of the respondent are as follows: (A) The apartment remains under rent control once private ownership regains control after a City foreclosure; (B) Should the private owner seek rent increases it is restricted to seek them from and only from the agency responsible for rent control by making the necessary procedural applications and filings; (C) Since the petitioner never sought increases of the rent control rent, it was never entitled to any increases and therefore the increases levied upon the respondent were unlawful overcharges.

2. A Look At The Statute

A. Section 26-507 Of The RSL

This special provision states as follows: (1) That in spite of the rent stabilization laws: (a) 1969 RSL, or (b) the Emergency Tenant Protection Act of 1974 (L 1976, ch 576, § 4), its provisions govern; (2) If any multiple dwelling is sold which had been previously acquired by the City, all dwelling units within the multiple dwelling shall be subject to the Rent Stabilization Law at the last rent charged by the City.

B. Its Relationship To The Rent Control Laws

The respondent has called to the court’s attention the fact that this statute fails to make any mention of rent control laws that may exist that contradict this section.

C. Its Legislative History

The petitioner points to the City Council’s Committee reports to disclose the intention of the Legislature when the statute was voted upon by the Council. In recommending the adoption of the section in question, the report of the Committee on Housing and Buildings stated as follows: "The intent of this bill is that these buildings, upon sale by the City, will now be subject to rent stabilization versus rent controlled.” (See, Rep of Comm on Hous and Bldgs, Int No. 594-A, Mar. 27, 1979; Proceedings of Council of City of NY, vol 1-A, Jan. 3, 1979-Apr. 26, 1979, AL 2.16.)

[704]*704Thus there seems to be no question that the purpose of section 26-507 was to change rent-controlled apartments to rent-stabilized units when the City returns a building to private ownership.

3. The Rent Control Statutes

Free access — add to your briefcase to read the full text and ask questions with AI

Related

320 Manhattan Ave. LP v. Nebbou
2026 NY Slip Op 30014(U) (NYC Civil Court, New York, 2026)

Cite This Page — Counsel Stack

Bluebook (online)
167 Misc. 2d 700, 635 N.Y.S.2d 432, 1995 N.Y. Misc. LEXIS 557, Counsel Stack Legal Research, https://law.counselstack.com/opinion/president-park-inc-v-brabham-nycivct-1995.