Tuesday, April 7, 2009

She Who Hesitates - Loses

If you have been living with a family member in her rent stabilized or rent controlled apartment for at least two years prior to her "permanent vacature," then you may be entitled to succession rights to the apartment. That is, you may be entitled to remain in the apartment as the successor tenant. However, if you do not assert your claim within a reasonable time after the tenant's departure, and, instead, you and/or the departed tenant engage in acts calculated to deceive the landlord about who is occupying the apartment, you may lose your succession rights.

These are the facts of Third Lenox Terrace Associates v Edwards, NYLJ 4/2/09, p. 41, col. 4 (Appellate Term, First Department):

Cynthia vacated her rent stabilized apartment in 1998, leaving her sister Linda in occupancy. Cynthia did not tell the landlord she was vacating. In fact, Cynthia and Linda deceived the landlord by (1) paying the rent with money orders signed by Cynthia and by (2) having Cynthia sign renewal leases offered by the landlord. Eventually, the landlord found out about the situation, and brought a holdover (eviction) proceeding against Linda, probably on the grounds that Cynthia gave Linda permission to occupy the premises, but that this permission ("license") expired when Cynthia vacated the apartment. In 2006, the housing court determined that Linda had succession rights, probably because Linda proved to the court that she primarily resided with Cynthia in the apartment for two years prior to Cynthia's departure. But the appellate court reversed the housing court's decision, finding that Linda waived her succession rights claim, by deliberately concealing the fact that Cynthia was no longer living in the apartment. The Court also found that the passage of eight years (1998 to 2006), prejudiced the landlord in the prosecution of its eviction proceeding.

There are many reasons why tenants with valid succession rights claims may behave like Linda and Cynthia: a desire to avoid lawyer's fees and court proceedings, fear of losing in court, and even grief (in a case where the tenant who "permanently vacated" actually died and the remaining occupant feels that he or she cannot cope with the stress of a court proceeding). However, be aware that if you have a succession rights claim and engage in acts of fraud (signing the departed tenant's name on money orders and renewal leases), you will probably lose your case - even if you had a good case to start with.

Ideally, the occupant with succession rights should not wait until she is discovered by the landlord, but should come forward voluntarily and promptly to assert her claim. At the very least, she should come forward, and demand a lease in her own name, when the landlord offers a renewal lease to the tenant who no longer lives in the apartment.