In the context of a landlord-tenant dispute in the New York County Civil Court , G* R* LLC, the landlord, sought to recover use and occupancy payments from the tenant, NV and her undertenants, during the stay of a holdover proceeding -- while the Division of Housing and Community Renewal (DHCR) resolved the tenant’s rent overcharge complaint.
The core issue was whether the tenant should be required to continue making use and occupancy payments while the DHCR complaint was pending. While the Civil Court initially denied the landlord’s request for these interim rent payments during the stay, the Appellate Term, First Department, modified the order to allow the landlord to collect interim use and occupancy in an amount equal to the previously paid rent.
The rationale behind this modification was grounded in New York procedural law under CPLR 2201, which permits courts to grant stays under “just terms.” The appellate decision relied on established case law, which holds that tenants should continue paying use and occupancy during legal proceedings to maintain fairness and protect both parties. In addition to characterizing rent-free occupancy as unjust, directing that rent payments be made by the tenant maintained the status quo and prevented undue hardship to the landlord.
You clearly gotta pay to stay ....
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DECISION