Landlord-Tenant—Rent Stabilization—Common Law Fraud Should No Longer Be The Standard for Pleading or Proving Fraudulent Deregulation—"Dearth of New York Case Law Regarding Regulatory Fraud"—Court Held That a "Broader More Flexible Definition of Fraud Better Serves the Public Policy Behind Rent Stabilization"—"Each Element of a Common Law Fraud Claim No Longer Must Be Pleaded" and "Not Every Element Must Be Proven"—"The Duty To Investigate a Colorable Claim of Fraud Is Sacrosanct"—the Tenant's Detailed Credible Affidavit Raised Questions About Alleged Apartment Improvements That Were Sufficiently Detailed To Rise "Far Above 'Mere Skepticism'"

This decision involved a nonpayment proceeding "involving an unregulated lease agreement to pay rent in the amount of $1,800 per month commencing April 1, 2020 and expiring March 31, 2021."

The petition alleged that the subject apartment (apartment) is subject to the Rent Stabilization Law (RSL). The tenant asserted a rent overcharge defense and counterclaim. She had moved for leave to amend her answer to include "an overcharge counterclaim pleading a common law fraudulent scheme to deregulate…." The tenant also moved for discovery.