Tenants Seek Class Action Suit for Unlawful Deregulation

In October 2014, New York’s highest court heard arguments on three cases that raise the question as to whether tenants can pursue class action lawsuits against owners based on claims of unlawful deregulation while the buildings received J-51 tax benefits. In each case the Appellate Division, First Department, had ruled that the statute generally prohibiting a class action to recover a penalty did not bar tenants from suing as a class to recover rent overcharges based on unlawful deregulation.