May a tenant sue a landlord for compensatory damages -- like lost income -- as a result of a landlord's unreasonable refusal to consent to a sublease?
According to the Appellate Term, First Department, in Brontman v. Chatsworth Realty , the answer is no.
In the State of New York, a special statute -- known as Rea Property Law section 226-b -- allows residential tenants of buildings with four or more units to sublease their apartments subject to compliance with a certain procedure and the submission of certain documents (including a copy of the proposed sublease). If a tenant completes that process, a landlord's consent to the transaction may not be "unreasonably withheld."
(This law also overrides any subleasing restriction or prohibition appearing in a tenant's lease agreement.*)
In the event an owner starts "playing games," and acts wrongfully, the statute provides that the "tenant may sublet in accordance with the [sublease] request and may recover the costs of [any] legal proceeding and attorneys' fees ...." Those remedies are "exclusive," which means other avenues of recovery may be foreclosed.
By way of example, the tenant in Brontman argued that it was entitled to damages for "lost sublease income" as a result of the landlord's unreasonable refusal to consent to the arrangement. A New York County Civil Court judge agreed and awarded the tenant $3,383.15.
On appeal, the Appellate Term, First Department, reversed and dismissed the tenant's case, citing to the limited remedies ("costs of the proceeding and attorneys fees") authorized by the governing statute.
Puff!
There went 3 grand!
For a copy of the Appellate Term's decision, please use this link: Brontman v. Chatsworth Realty
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*Please note that this law does NOT apply to public housing or to cooperative buildings.