Following a state appellate panel ruling handed down Friday, Manhattan and Brooklyn now have very different precedents controlling the rights and responsibilities of tenants unlawfully residing in commercial lofts. A unanimous Appellate Division, Second Department, panel found that a landlord that allowed tenants to reside in a commercial property may eject them for violating their lease and failing to pay rent, but that it may not recover unpaid back rent. The decision to preclude back rent marks a split with First Department, which has ruled that a tenant who knows that a tenancy is illegal may not enjoy the benefits of occupancy then shirk the duty to pay.
October 27, 2008 at 12:00 AM
1 minute read
Following a state appellate panel ruling handed down Friday, Manhattan and Brooklyn now have very different precedents controlling the rights and responsibilities of tenants unlawfully residing in commercial lofts.
A unanimous Appellate Division, Second Department, panel found that a landlord that allowed tenants to reside in a commercial property may eject them for violating their lease and failing to pay rent, but that it may not recover unpaid back rent.
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