BBG’s appeal team received another significant win yesterday with the Appellate Division, First Department ruling that the Estate of a former Loft Law tenant could only be compensated for fixture fees, and had no possessory rights to the unit or the ability to designate an incoming tenant. The appellate court also upheld the valuation of the fixture fees which was limited to only the improvements that the former tenant had made, minus depreciation. Finally, the decision also clarified a procedural point concerning what could trigger an owner’s default, and attendant consequences, under a fixture fee disclosure form.
This unanimous win will hopefully close the book to an extremely protracted Loft Law litigation. Magda Cruz, Michael Bobick, and Parker Rothman worked on the appeal.
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