R&E Defeats Motion Filed By NYC Dept. Of Housing Preservation And Development
Rosenberg & Estis defeated a motion filed by the New York City Department of Housing Preservation and Development, in an HP proceeding, which sought to add successor owner as a party to a contempt hearing. The hearing is pending against the predecessor owner for failing to comply with an Order to Correct issued by the Court on October 5, 2007 after a fire destroyed the subject building. The Order to Correct also required prior owner to restore a rent control tenant to possession. After purchasing the building, R&E’s client, 65 Whipple LLC, demolished the remains of the former building and built a larger building in its place with a different configuration of apartments. After the building was completed, the tenant sought restoration to possession in an illegal lockout proceeding in Housing Court. Tenant’s application for restoration was denied because tenant’s apartment no longer exists. In opposing HPD’s motion, R&E successfully argued that Civil Court’s dismissal of tenant’s illegal lockout on the merits prevented HPD from seeking to compel 65 Whipple LLC to restore tenant to occupancy based on res judicata. R&E also successfully argued that no relief is available against 65 Whipple LLC arising out of the fire because 65 Whipple LLC complied with the Court’s Order to Correct by rebuilding the subject building.