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McDonald v. JBAM TRG Spring, LLC

Rent Overcharge Claim Maintained Where Insufficient Evidence of Proper Deregulation

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DECISION, ORDER AND DECLARATORY JUDGMENT

*1  Currently before the Court is defendant’s motion for partial summary judgment, to the extent of declaring that 1) plaintiff’s current apartment, apartment 4, was properly deregulated and is not rent-stabilized due to the J-51 tax abatement program, 2) the rent-stabilized status of her prior apartment, apartment 6, does not transfer to her current apartment; 3) dismissal of the portion of the first cause of action which seeks a directive that defendant register apartment 4 with the New York State Division of Housing and Community Renewal (DHCR), and 4) dismissal of the portion of the second cause of action which seeks dismissal of rent overcharge and treble damage claims for the current apartment. In addition, defendant moves to dismiss the related causes of action including those for rent overcharges and treble damages for the current apartment. Plaintiff has withdrawn her third cause of action for reformation of the leases for both apartments, and does not oppose the part of defendant’s motion that seeks to amend the answer. For the reasons below, the Court grants the prong of the motion seeking a declaration that the rent-stabilized status of apartment 6 does not transfer to apartment 4, grants the portion of the motion seeking leave to amend the complaint, and denies the remainder of the motion. Starting in the 1995/1996 fiscal year, the owner of the building located at 55 Spring Street in Manhattan (the building) — the predecessor-in-interest to defendant, the current owner — was the

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