News

FIRM PARTNER A PANELIST AT CIVIL RIGHTS ROUND TABLE AT NEW YORK LAW SCHOOL AND SPONSORED BY THE DEPT. OF HEALTH AND HUMAN SERVICES

June 6th, 2011 Mr. Vernon was invited to be a panelist at the first annual conference of the Civil Rights Roundtable, in which participants included the Dept. of Justice, the Dept. of Education, and the New York State Division of Human Rights. The program was well attended, and the guest speaker was Soledad O'Brien. The accomplished goal of the program was in educating the public about various changes in the disability laws.

FIRM PARTNER TO BE LECTURER AT 2011 MONDAY NIGHT LAW SPONSORED BY NYC BAR ASSOCIATION

June 2nd, 2010 Mr. Vernon will be a speaker at Monday Night Law, which is sponsored by the NYC Bar Association, and at which Mr. Vernon has been a program speaker for the past six years. The program is to educate lawyers in various areas of law so that they may give pro bono advice to the public. Mr. Vernon speaks on all areas of housing, ranging from rent regulated housing to Mitchell-Lama coops as well as private cooperative and condominium housing.

COMMERCIAL BUILDING TRANSACTIONS

Mr. Vernon is handling the sale of one of the earlier commercial cooperative buildings in a transaction involving the sale of the entire building under intricate contractual arrangements. Mr. Vernon has also recently handled the sale of a mid-town building involving the need for Attorney General approval and other unique terms concerning the buyback of condominium space.

RESIDENTIAL REAL ESTATE TRANSACTIONS

The firm continues to handle the purchase, sale and financing of cooperative and condominium units, as well as brownstones and houses. A review of a cooperative/condominium plan, all amendments, financials and board minutes continues to be a crucial aspect of such transactions.

LEGISLATURE EXTENDS RENT STABILIZATION

The legislature recently extended and made various changes to the laws affecting rent stabilized and rent controlled tenants. Some of the key changes involve luxury deregulation and the change in the threshold amounts for the rent and the income under which an apartment can be luxury deregulated. The Court of appeals' decision in Roberts v. Tishman Speyer that brought various apartments back into rent stabilization (and was previously addressed in this news section) was not affected by the legislature and tenants' rights remain the same. Mr. Vernon is handling several cases involving J51 tax abatements and protection of tenants in rent stabilization. One of the first cases concerning how rents are determined has been brought by the firm, and the firm's Motion for Summary Judgment is currently pending. The Court of Appeals victory in Thornton v Baron (by Mr. Vernon in 2005 concerning the setting of rents when apartments are unlawfully deregulated) may prove uniquely applicable to various Roberts-type cases.

APPELLATE DIVISION VICTORY AGAINST HOMEOWNERS' ASSOCIATION

Mr. Vernon represented a unit owner in a Westchester Homeowners' Association that had prevailed against the unit owner in Westchester Supreme Court. The firm took the matter on appeal and in July 2011 won a reversal of the Lower Court Decision on behalf of the homeowner against the Homeowners' Association. In sum, the appellate division found that the standard applicable to nuisance claims was not properly applied by the court below, and remanded the case to the trial court.

COOP OWNERS GROUP REPRESENTATION

The firm represented a group of approximately eighty coop unit owners, for whom Mr. Vernon successfully negotiated, and litigated, modifications to rules allowing companion animals.

REPRESENTATION OF DISABLED PROSPECTIVE COOP PURCHASER

With victories in both the Lower Court and Appellate Division, the firm prevailed in a challenge to a board's discriminatory rejection of a prospective purchaser. Mr. Vernon argued in both the Lower Court and the Appellate Division in support of the Court's finding that a board may not inquire into a person's disability as part of an application process. The case was reported on the front page of the New York Law Journal

FIRM PREVAILS IN REPRESENTATION OF RENT STABILIZED TENANT'S RIGHTS UNDER COURT-ORDERED NEGOTIATED STIPULATION

Mr. Vernon and Mr. Silagy of the firm prevailed against a landlord's attempt to renege on a negotiated settlement agreement in which the firm's client, a rent stabilized tenant, had previously succeeded as the rent stabilized tenant by way of a court ordered stipulation.

FIRM PREVAILS ON BEHALF OF TENANT IN NON-PRIMARY RESIDENCE PROCEEDING

Mr. Vernon and Mr. Silagy prevailed on behalf of a rent stabilized tenant against a landlord who tried to start a new non-primary residence proceeding using a predicate notice that had been the basis for a previously discontinued proceeding. The firm has prevailed with this type of defense in several previous matters.

FIRM PREVAILS IN APPELLATE TERM UNDER STATUTE OF LIMITATIONS

June 2nd, 2010 The Appellate Term upheld the firm's lower court victory that the six-year statute of limitations bars a claim that a tenant's companion animal was a breach of her lease. The rent stabilized tenant's Yorkshire terrier had lived at her apartment for 7-and-a-half years before the landlord attempted to evict her for breaching a no-pet clause. The firm moved to dismiss the proceeding based on the statute of limitations for breaches of contract under CPLR §213, as well as waiver under §27-2009.1 of the Administrative Code of the City of New York. As Judge Peter Wendt found, the landlord was barred from maintaining the case by a six-year statute of limitations for breaches of contract. The proceeding was dismissed and the landlord ordered to pay the tenant's legal fees. On appeal, the Appellate Term affirmed. The statute of limitations applies regardless of whether a landlord, co-op or condo knew of the presence of the companion animal. Mr. Vernon handled both the lower court case and appeal.

CAREER PANEL HOSTED BY BLS STUDENT ANIMAL LEGAL DEFENSE FUND

March 1st, 2010 Mr. Vernon spoke at the Brooklyn Law School Student Animal Legal Defense Fund career panel on Wednesday, March 10, 2010 at 1:00 P.M. The panelists, including Odette Wilkins (executive director, Equal Justice Alliance), Beverly Jones (vice president and corporate counsel, ASPCA), Amy Trakinski & Len Egert of Trakinski & Egert.

"TO USE AND ENJOY" – HOUSING RIGHTS FOR PERSONS WITH DISABILITIES

March 1st, 2010 Co-sponsored by the US Department of Housing and Urban Development and the New York State Division of Human Rights, and as part of Fair Housing Month this coming April, Mr. Vernon will be a speaker at a program titled "To Use and Enjoy" – Housing Rights for Persons with Disabilities. The program, designed for attorneys at the Division of Human Rights, runs from April 27 to 29, 2010. Mr. Vernon will speak on Tuesday, April 27, 2010 at 2:45 P.M.

FIRM PARTNER CHAIRS SEMINAR AT NEW YORK CITY BAR ASSOCIATION CLE COURSE

On December 7, 2009 Mr. Vernon chaired a seminar at the New York City Bar Center for CLE discussing issues concerning companion animals in housing in New York. The applicable federal, state and local laws were examined, including §27-2009.1 of the Administrative Code of the City of New York, laws relating to discrimination and the disabled, and statutory and case law generally applicable to housing. Cooperative, condominium, as well as rent-regulated housing were discussed. Course materials, CD and DVD versions are available on the City Bar website.

GOV. PATERSON INTRODUCES BILL TO LIMIT LUXURY DEREGULATION

June 17th, 2010 As reported in the New York Law Journal and the New York Times, Governor David Paterson last week introduced new legislation [PDF] that would raise the threshold at which a landlord may seek to deregulate an apartment–from a monthly rent of $2,000 to $3,000. In addition, the bill would address apartment deregulation for buildings receiving J-51 tax benefits, which were excluded from deregulation by the 2009 Court of Appeals decision in Roberts v. Tishman Speyer Properties LP. The new law, if passed, would allow current J-51 benefit recipients to deregulate apartments after October 22, 2009, provided the apartments did not become regulated as a result of receiving the J-51 benefit. The bill would establish a formula for determining overcharges in apartments improperly deregulated prior to the Roberts decision. The law potentially affects many tens of thousands of units. Tenants, regulated and deregulated alike, should consult with counsel to determine their rights.

APPELLATE TERM UPHOLDS RIGHT OF TENANT TO KEEP HER COMPANION ANIMAL OF 7 YEARS

June 2nd, 2010 In Elliana 76 LLC v. Spier, the Appellate Term upheld a lower court ruling that the six-year statute of limitations bars a claim that a tenant’s companion animal was a breach of her lease. The rent stabilized tenant’s Yorkshire terrier had lived at her apartment for 7-and-a-half years before the landlord attempted to evict her for breaching a no-pet clause. We moved to dismiss the proceeding based on the statute of limitations for breaches of contract under CPLR §213, as well as waiver under §27-2009.1 of the Administrative Code of the City of New York. As Judge Peter Wendt found, the landlord was barred from maintaining the case by a six-year statute of limitations for breaches of contract. The proceeding was dismissed and the landlord ordered to pay the tenant’s legal fees. On appeal, the Appellate Term affirmed. The statute of limitations applies regardless of whether a landlord, co-op or condo knew of the presence of the companion animal. Ms. Spier was represented by Darryl M. Vernon of the firm.

CAREER PANEL HOSTED BY BLS STUDENT ANIMAL LEGAL DEFENSE FUND

March 1st, 2010 Mr. Vernon will be speaking on the Brooklyn Law School Student Animal Legal Defense Fund career panel on Wednesday, March 10, 2010 at 1:00 P.M. The panelists, including Odette Wilkins (executive director, Equal Justice Alliance), Beverly Jones (vice president and corporate counsel, ASPCA), Amy Trakinski & Len Egert of Trakinski & Egert, and Mr. Vernon of the firm, will describe the substance of animal legal defense and how they arrived in their current positions. A question-and-answer session will follow. 250 Joralemon Street, Room 505, in Downtown Brooklyn.

“TO USE AND ENJOY” – HOUSING RIGHTS FOR PERSONS WITH DISABILITIES

March 1st, 2010 Co-sponsored by the US Department of Housing and Urban Development and the New York State Division of Human Rights, and as part of Fair Housing Month this coming April, Mr. Vernon will be a speaker at a program titled “To Use and Enjoy” – Housing Rights for Persons with Disabilities. The program, designed for attorneys at the Division of Human Rights, runs from April 27 to 29, 2010. Mr. Vernon will speak on Tuesday, April 27, 2010 at 2:45 P.M.

THE IMPORTANCE OF HAVING BOARD-APPROVED ALTERATION AGREEMENTS IN CO-OPS

February 24th, 2010 A recent New York Law Journal article discussing apartment alterations in co-ops and condominiums, and the importance of having board-approved alteration agreements, highlighted Babeli v. 7-11 East 13th Street Corporation, a 2003 cases involving a cooperative unit owner with such a board-approved alteration agreement. After moving for preliminary injunction, Ms. Babeli won a court order compelling her co-op to allow her to proceed with agreed-upon alterations. The court, reviewing the agreement the co-op board had made with the plaintiff, concluded that she should be allowed to connect her rooftop space to her apartment by a staircase as outlined in the agreement. Further, the co-op’s stalling in coordinating the completion of the alterations-in-progress were pretext for trying to force Ms. Babeli to purchase more shares for her rooftop space, and in part because she had to live amidst ongoing construction, plaintiff met the requirements for preliminary injunction. Ms. Babeli was represented by Mel B. Ginsburg.

CO-OP OWNER WINS RIGHT TO KEEP COMPANION ANIMAL UNDER THE 3 MONTH RULE

February 23rd, 2010 On behalf of a co-op owner, the firm’s motion for summary judgment was granted when we demonstrated that the co-op did not timely commence the proceeding under the requirements of §27-2009.1 of the Administrative Code of the City of New York (sometimes referred to as the “Pet Law” or “three month rule”). Vernon & Ginsburg, LLP represented respondents Roman & Valiantsina Portnov, whose open and notorious harboring of their dog had begun, the court found, more than three months prior to the landlord’s serving a notice of petition and petition, thus triggering a waiver of any no-pet lease clause under the Pet Law. “By waiting to serve the Notice of Petition and Petition after it first became aware of the dog’s existence, petitioner acted at its own peril, notwithstanding that it gave the respondents the benefit of the doubt,” Civil Court Judge George M. Heymann wrote in 2229-13 Apt. Corp. v. Portnov.. The court noted further that “[p]erhaps [the landlord] should have heeded the adage: ‘shoot first, ask questions later.’ Had petitioner taken the precautionary and affirmative steps of timely commencing this proceeding at the outset, the waiver provision of the ‘Pet Law’ would not have come into play.” The decision appeared in the decisions of interest section of the New York Law Journal on January 21, 2010.

RENT-STABILIZED TENANT WINS RIGHT TO KEEP COMPANION ANIMAL OF 7 YEARS UNDER STATUTE OF LIMITATIONS

February 23rd, 2010 In Elliana 76 LLC v. Spier, Ms. Spier’s Yorkshire terrier had lived at her apartment for 7-and-a-half years before the landlord attempted to evict her for breaching a no-pet clause. On behalf of Ms. Spier, we moved to dismiss the proceeding based on the statute of limitations for breaches of contract under CPLR §213, as well as waiver under §27-2009.1 of the Administrative Code of the City of New York. As Housing Court Judge Peter Wendt found, the landlord was barred from maintaining the case by a six-year statute of limitations for breaches of contract. The proceeding was dismissed and the landlord ordered to pay the tenant’s legal fees. Ms. Spier was represented by Darryl M. Vernon of the firm.

COURT OF APPEALS LIMITS LUXURY DEREGULATION IN J-51 BUILDINGS.

October 22nd, 2009 The Court of Appeals ruled today in Roberts v. Tishman Speyer that rent-stabilized apartments in buildings receiving J-51 tax benefits are not subject to luxury deregulation. This ruling will affect several groups of tenants. First, tenants who are presently in a luxury deregulation proceeding in a J-51 building will have direct and immediate benefit. Second, tenants whose apartments were already luxury deregulated and moved out of a J-51 building as a result may have claims based on the ruling. And third, those whose apartments have been luxury deregulated in a J-51 building and who have remained, now paying a rent likely well in excess of their rent-stabilized rent, may have substantial overcharge claims and a right to return to the pre-luxury-deregulation rent. As appears from the majority opinion’s final paragraph, the court left open issues concerning statutes of limitation, retroactivity and other issues. It is thus important to seek counsel promptly.

THE LAWS AFFECTING HOUSING & COMPANION ANIMALS

September 1st, 2009 On December 7, 2009, Mr. Vernon chaired a seminar at the New York City Bar Center for CLE discussing issues concerning companion animals in housing in New York. The applicable federal, state and local laws were examined, including §27-2009.1 of the Administrative Code of the City of New York, laws relating to discrimination and the disabled, and statutory and case law generally applicable to housing. Cooperative, condominium, as well as rent-regulated housing were discussed. Course materials, CD and DVD versions are available on the City Bar website.

1725 V. BLOCK

August 26th, 2009 The firm recently prevailed at the Appellate Division, helping secure rights for rent-stabilized tenants in a non-eviction co-op to have a companion animals. 1725 v. Block. The Appellate Division ruled that under the three-month rule (§27-2009.1 of the Administrative Code of the City of New York) the knowledge of on-site employees that provide services to both co-op unit owners and rent-regulated tenants alike is sufficient to trigger a waiver of a no-pet clause and allow the rent-regulated tenants to keep their companion animal. The case cited the firm’s argument that the General Business Law §352-eeee, concerning managing agents in a non-eviction co-op, supports a finding that the knowledge of the on-site employees in a co-op triggers a waiver for regulated tenants under §27-2009.1. The rent-stabilized tenants in Block hired Vernon & Ginsburg, LLP after a defeat in the lower court. Our firm prevailed in appeals at both the Appellate Term and Appellate Division.

STATE LEGISLATURE UPDATE

February 9th, 2009 The following is our initial summary of the laws relating to rent regulation that passed the Assembly and were referred to the Senate on February 2, 2009. (Visit the State Assembly’s website for a complete list.)
Bill No. A-860 Concerns luxury deregulation and raises the threshold income to $240,000 through January 1, 2010. After January 1, 2010, the income threshold will be raised by the CPI in effect for NY, NJ, CT and PA. The threshold rent is raised to $2,700 per month through January 1, 2010 with the same CPI increase as for income. If passed, the bill would be effective immediately.
Bill No. A-1688 This essentially repeals the Urstadt Law for cities of 1 million or greater population. The basic theory is that if a municipality can weaken rent regulation laws it should be able to strengthen rent regulation also. The presently existing Urstadt Law prohibits any municipality from enacting more restrictive rent regulation. This is only applied to financial aspects such as rent increases, and not items such as window guard legislation or the three-month city pet law.
Bill No. A-2005 Any apartment that was deregulated upon a vacancy because the rent after the vacancy was, or became, more than $2,000 per month goes back into rent regulation with the legal rent as of December 31, 2006 if the deregulation occurred on or after January 1, 2007. Any apartments deregulated before January 1, 2007 with a monthly rent of less than $5,000 per month in New York City (or less than $3,500 per month elsewhere) go back into regulation with the “actual rent applicable” on January 1, 2007 or the “first rent applicable” after January 1, 2007. This legislation could lead to landlords only renting housing eligible for luxury deregulation to households with income greater than the $240,000 threshold. The supporting memo notes that some 300,000 apartments have been lost to luxury deregulation in New York City, Westchester, Nassau and Rockland.