X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

Landlord, as limited by its briefs, appeals from that portion of an order of the Civil Court of the City of New York, New York County (Marcia J. Sikowitz, J.), dated March 2, 2021, which, in two related holdover proceedings, granted tenant’s motion for summary judgment on her first counterclaim and directed the return of rent and/or use and occupancy deposited into court and paid to landlord during the pendency of the proceedings. PER CURIAM Order (Marcia J. Sikowitz, J.), dated March 2, 2021, insofar as appealed from, affirmed, with $10 costs. In view of Civil Court’s unchallenged determination that the two apartments occupied by tenant had been previously illegally altered by landlord or its predecessor, and were occupied without a valid certificate of occupancy, landlord was precluded from recovering rent or use and occupancy (see Multiple Dwelling Law [MDL] §§301[1], 302; Chazon, LLC v. Maugenest, 19 NY3d 410 [2012]; Malden v. Wykoff S.P., LLC, 192 AD3d 1002 [2021]; Barrett Japaning, Inc. v. Bialobroda, 190 AD3d 544 [2021]; Matter of GVS Props. LLC v. Vargas, 172 AD3d 466 [2019]; Matter of 49 Bleecker, Inc. v. Gatien, 157 AD3d 619 [2018]; Hart-Zafra v. Singh, 16 AD3d 143 [2005]). Thus, the use and occupancy deposited into court by tenant pursuant to RPAPL 745(2), as per Civil Court’s January 2018 orders, was properly directed to be returned to tenant (see RPAPL 745[2][d][iii]). We also agree that tenant is entitled to a return of the use and occupancy deposited into court and paid directly to landlord pursuant to the parties’ February 2019 and May 2019 stipulations. The stipulations, which stayed the underlying holdover proceedings while tenant challenged a DHCR determination that the apartments were not subject to rent stabilization, respectively directed that tenant deposit into court and, then, tender use and occupancy directly to landlord as a condition of the stay. The stipulations further provided that such payment and deposit of the use and occupancy was “without prejudice to any and all of [tenant's] rights and/or claims and/or defenses regarding the subject apartments and/or the [holdover] proceedings,” language which necessarily included tenant’s MDL §302 counterclaim. Giving proper effect to the plain language of the stipulations (see Mill Rock Plaza Assoc. v. Lively, 224 AD2d 301 [1996]), and the court’s ultimate unchallenged finding that the premises lacked a valid certificate of occupancy, the use and occupancy paid or deposited pendente lite was properly directed to be returned. In the circumstances, this case is distinguishable from cases like Goho Equities v. Weiss (149 Misc 2d 628 [App Term, 1st Dept 1991]), where we held that use and occupancy voluntarily paid by a tenant is not recoverable pursuant to MDL §302 and Rosgro Realty Co. v. Braynen (70 Misc 2d 808 [App Term, 1st Dept 1972], affd sub nom. Grosfeld v. Braynen, 41 AD2d 605 [1973]), where we held that money deposited by a tenant as a condition of a stay is not recoverable under the Multiple Dwelling Law. Unlike those cases, here the parties expressly stipulated that the payment and deposit of use and occupancy were subject to tenant’s MDL claim. We have examined landlord’s remaining contentions and find them to be without merit. THIS CONSTITUTES THE DECISION AND ORDER OF THE COURT. Dated: November 26, 2021

 
Reprints & Licensing
Mentioned in a Law.com story?

License our industry-leading legal content to extend your thought leadership and build your brand.

More From ALM

With this subscription you will receive unlimited access to high quality, online, on-demand premium content from well-respected faculty in the legal industry. This is perfect for attorneys licensed in multiple jurisdictions or for attorneys that have fulfilled their CLE requirement but need to access resourceful information for their practice areas.
View Now
Our Team Account subscription service is for legal teams of four or more attorneys. Each attorney is granted unlimited access to high quality, on-demand premium content from well-respected faculty in the legal industry along with administrative access to easily manage CLE for the entire team.
View Now
Gain access to some of the most knowledgeable and experienced attorneys with our 2 bundle options! Our Compliance bundles are curated by CLE Counselors and include current legal topics and challenges within the industry. Our second option allows you to build your bundle and strategically select the content that pertains to your needs. Both options are priced the same.
View Now
September 04, 2025
New York, NY

The New York Law Journal honors attorneys and judges who have made a remarkable difference in the legal profession in New York.


Learn More
February 24, 2025 - February 26, 2025
Las Vegas, NV

This conference aims to help insurers and litigators better manage complex claims and litigation.


Learn More
March 24, 2025
New York, NY

Recognizing innovation in the legal technology sector for working on precedent-setting, game-changing projects and initiatives.


Learn More

The County is looking for a skilled and seasoned County Attorney to oversee the Law Department in delivering top-tier legal services, repres...


Apply Now ›

Position Summary: The Corporate General Counsel will manage and coordinate all legal and compliance matters affecting the company. The Gen...


Apply Now ›

We are seeking two attorneys with a minimum of two to three years of experience to join our prominent and thriving education law practice in...


Apply Now ›