Settlement Agreements With Airbnb Violate Separation of Powers
In their Hospitality Litigation column, Todd Soloway and Bryan Mohler discuss the act introduced in the New York State Senate and Assembly to curtail the advertisement of short-term rentals in New York, and explain how, in settling subsequent litigation with Airbnb, Governor Cuomo and Mayor Bill de Blasio have, in an effort to protect Airbnb, undercut the express language of the statute. In so doing, the executive branch has usurped the power of New York's legislature, in direct violation of the separation of powers doctrine. Their article explores this situation and potential avenues for aggrieved parties to enforce the law against Airbnb.
August 15, 2017 at 02:05 PM
11 minute read
Depending on who you ask, Airbnb either poses a significant threat to cities across the country—to residents, hotel owners, and hotel employees alike, or is a innovative disruptor to the lodging market. Home sharing is proving to be wildly popular, but it is not without risks and legal issues. Aside from health, security and life safety concerns raised by the illegal short-term rental of apartments and homes to transient guests, the use of apartments for short-term rental use is damaging the available stock of affordable housing, driving up rents, forcing residents from their neighborhoods, and taking significant business away from hotels, in turn threatening the jobs of hotel employees.
These issues are particularly significant in New York City, where lack of affordable housing is a constant issue and tens of thousands make their livelihoods in the tourism industry. To address those concerns, in early 2016, an Act was introduced in the New York State Senate and Assembly to curtail the advertisement of short-term rentals in New York, and drafted to amend both New York state and New York city law to allow for the punishment and fining of offenders for the advertisement of illegal, short-term rentals. That act passed the Assembly and the Senate in June 2016, and was signed into law by Governor Andrew Cuomo on Oct. 21, 2016.
However, in settling subsequent litigation with Airbnb, Governor Cuomo and Mayor Bill de Blasio have, in an effort to protect Airbnb, undercut the express language of the statute. In so doing, the executive branch has usurped the power of New York's legislature, in direct violation of the separation of powers doctrine. This article explores this situation and potential avenues for aggrieved parties to enforce the law against Airbnb.
The New Law
Under New York's Multiple Dwelling Law §120, it is illegal to rent out an apartment in a Class A multiple dwelling (nearly all residential apartments fit into this category) for less than 30 days without the owner being present. N.Y. Mult. Dwell. §120 (2011). For various reasons including fire and life safety concerns, this law recognizes that apartments are not to be used like hotels.
This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.
To view this content, please continue to their sites.
Not a Lexis Subscriber?
Subscribe Now
Not a Bloomberg Law Subscriber?
Subscribe Now
NOT FOR REPRINT
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
You Might Like
View AllNYC's Administrative Court's to Publish Some Rulings in the New York Law Journal Is Welcomed. But It Should Go Further
4 minute readRulings From NYC's Administrative Law Court to Be Published in the Law Journal
Trending Stories
- 1'Professional Misconduct': Maryland Supreme Court Disbars 86-Year-Old Attorney
- 2Capital Markets Partners Expect IPO Resurgence During Trump Administration
- 3Chief Assistant District Attorney and Litigator Shortlisted for Paulding County Judgeship
- 4'America's Next Top Model' Contestant Says Ye Assaulted Her
- 5LexisNexis Responds to Canadian Professor’s Criticism of Lexis+ AI
Who Got The Work
Michael G. Bongiorno, Andrew Scott Dulberg and Elizabeth E. Driscoll from Wilmer Cutler Pickering Hale and Dorr have stepped in to represent Symbotic Inc., an A.I.-enabled technology platform that focuses on increasing supply chain efficiency, and other defendants in a pending shareholder derivative lawsuit. The case, filed Oct. 2 in Massachusetts District Court by the Brown Law Firm on behalf of Stephen Austen, accuses certain officers and directors of misleading investors in regard to Symbotic's potential for margin growth by failing to disclose that the company was not equipped to timely deploy its systems or manage expenses through project delays. The case, assigned to U.S. District Judge Nathaniel M. Gorton, is 1:24-cv-12522, Austen v. Cohen et al.
Who Got The Work
Edmund Polubinski and Marie Killmond of Davis Polk & Wardwell have entered appearances for data platform software development company MongoDB and other defendants in a pending shareholder derivative lawsuit. The action, filed Oct. 7 in New York Southern District Court by the Brown Law Firm, accuses the company's directors and/or officers of falsely expressing confidence in the company’s restructuring of its sales incentive plan and downplaying the severity of decreases in its upfront commitments. The case is 1:24-cv-07594, Roy v. Ittycheria et al.
Who Got The Work
Amy O. Bruchs and Kurt F. Ellison of Michael Best & Friedrich have entered appearances for Epic Systems Corp. in a pending employment discrimination lawsuit. The suit was filed Sept. 7 in Wisconsin Western District Court by Levine Eisberner LLC and Siri & Glimstad on behalf of a project manager who claims that he was wrongfully terminated after applying for a religious exemption to the defendant's COVID-19 vaccine mandate. The case, assigned to U.S. Magistrate Judge Anita Marie Boor, is 3:24-cv-00630, Secker, Nathan v. Epic Systems Corporation.
Who Got The Work
David X. Sullivan, Thomas J. Finn and Gregory A. Hall from McCarter & English have entered appearances for Sunrun Installation Services in a pending civil rights lawsuit. The complaint was filed Sept. 4 in Connecticut District Court by attorney Robert M. Berke on behalf of former employee George Edward Steins, who was arrested and charged with employing an unregistered home improvement salesperson. The complaint alleges that had Sunrun informed the Connecticut Department of Consumer Protection that the plaintiff's employment had ended in 2017 and that he no longer held Sunrun's home improvement contractor license, he would not have been hit with charges, which were dismissed in May 2024. The case, assigned to U.S. District Judge Jeffrey A. Meyer, is 3:24-cv-01423, Steins v. Sunrun, Inc. et al.
Who Got The Work
Greenberg Traurig shareholder Joshua L. Raskin has entered an appearance for boohoo.com UK Ltd. in a pending patent infringement lawsuit. The suit, filed Sept. 3 in Texas Eastern District Court by Rozier Hardt McDonough on behalf of Alto Dynamics, asserts five patents related to an online shopping platform. The case, assigned to U.S. District Judge Rodney Gilstrap, is 2:24-cv-00719, Alto Dynamics, LLC v. boohoo.com UK Limited.
Featured Firms
Law Offices of Gary Martin Hays & Associates, P.C.
(470) 294-1674
Law Offices of Mark E. Salomone
(857) 444-6468
Smith & Hassler
(713) 739-1250