Judge Jean Schneider
The court opined if a deliberate misstatement of the subject apartment’s rent regulatory status in the petition of a summary holdover action warranted dismissal of the proceeding. Owner’s petition alleged shareholder Seacove I LLC breached it proprietary lease by allowing its tenant to make excessive noise in the apartment. Seacove argued it cured any violation by bringing its own holdover action against tenant which was settled with an agreement. Tenant moved to dismiss owner’s action, but owner alleged it did not need to state a claim against tenant, stating if it succeeded against Seacove it could also remove tenant as a party in possession only as Seacove’s undertenant. The court disagreed noting tenant’s rights could only be terminated in accordance with the Rent Stabilization Code. Also, it stated pleading requirements were not mere technicalities, and accurate statements of an apartment’s status were necessary to apprise the tenant and court of the parties’ substantive rights. The court noted when an allegations was false or misleading, as here—that the subject apartment was not subject to rent regulation, despite owner conceding tenant was rent stabilized—important rights that affect the outcome of the case may be masked, warranting dismissal.
