A landlord had commenced a holdover proceeding against the respondent rent stabilized tenants, seeking possession of the subject premises on the basis of “nuisance and breach of a substantial obligation of…tenancy, to wit, by illegal alterations and commercial use of residential premises.”

Following a trial, the court awarded the landlord a judgment of possession with a stay to permit the tenants to cure. The tenants cured. However, the landlord had appealed. The Appellate Term affirmed the trial court’s decision. The landlord then moved for a judgment seeking recovery of “fines that (landlord) had to pay, unpaid use and occupancy, and attorneys’ fees.”

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