BBG Secures Summary Judgment in Apartment Deregulation Dispute

Supreme Court Justice Gerald Lebovits recently granted summary judgment in favor of the defendant-landlord in Merolle v. 17 West 82nd Street LLC, dismissing the tenants’ claims that their apartment was subject to rent stabilization. The Court found that, under pre-HSTPA law, the apartment was deregulated when the plaintiffs-tenants executed a lease at a rate exceeding the deregulation threshold in 2014, and that their challenge was therefore untimely. Allegations of fraud and fraudulent DHCR registrations were also rejected by the Court as unsupported by the evidence, which included maximum base rent records from DHCR, historical occupancy records from the New York Public Library, and the building’s 1979 contract of sale.

This decision reinforces the importance of filing timely Fair Market Rent Appeals and clarifies the regulatory status of units transitioning from rent control.

The motion was led by partner Adam M. Bernstein and supported by partner Anthony Morreale and legal assistant Jaime Lopez.